Fri, 11 May 2012 13:01:29 CDT
Look out below! Chesapeake Energy shares closed down 14% today on wording in an SEC filing that the company might have to write down the value of its assets because of record low gas prices and might have trouble meeting its obligations under bond covenants. As a result, it suggested that it may have to delay much needed asset sales. Simply put, when prices become too low, it is no longer economic for drillers to go after certain gas reservoirs, making those reserves worth less than before.
Read full article at: forbes.com