Chesapeake Energy might likely sell off more oil and gas assets, CEO Doug Lawler says
Linus Unah – Fourth Estate Contributor
Oklahoma City, OK, United States (4E) – Chesapeake Energy will likely sell off more oil and gas assets in a bid to reduce its debt load.
“We have 11.3 billion barrels of net recoverable resources across our asset base,” Chesapeake’s CEO Doug Lawler told By Steve Gooch , The Oklahoman on Thursday.
“It’s going to be difficult for us to drill and complete all those as fast as what we’d like. We don’t have the capital funding, the cash flow to do it. So we are going to be continuing to look at additional asset sales.”
The company’s debt burden went up after it embarked on “a massive spree of land buying” under late founder and former Chief Executive Aubrey McClendon , CNBC reported.
Oklahoma City-based Chesapeake has been on track to reduce its debt since Lawler became CEO in 2013.
Lawler told CNBC that the company is hoping to cut down debt by an additional $2 billion to $3 billion during the next two to three years.
Chesapeake finalized divestments of $2.5 billion in 2016, according to Guggenheim Securities.
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