Chesapeake’s debt maturity profile
At the end of 2Q17, Chesapeake Energy (CHK) had a principal debt balance of $9.7 billion, which was slightly lower than its principal debt balance of $10.0 billion at the end of 2016. The company’s total liquidity as of June 30, 2017, was approximately $3.1 billion.
CHK has a goal of $2.0 billion to $3.0 billion of debt reduction, although it hasn’t clearly stated the timeline in which it wishes to achieve that goal.
In another refinancing effort in late May this year, CHK announced the issuance of $750.0 million in additional notes in a private placement. The proceeds were to be used for the issuance of tender offers, debt repayment, and general corporate purposes. In late June, CHK announced the redemption of its 2.8% contingent convertible notes due in 2035.
As we can see in the above graph, CHK has no major debt obligations until 2020, when possibly the energy price environment will have improved. Be sure to read the previous parts of this series to know how CHK has performed this year in the current energy price scenario.