Chesapeake Energy Drilled Its Own Grave
Chesapeake Energy (NYSE: CHK) is reportedly on the brink of bankruptcy. While the recent slump in commodity prices might go down as the culprit, the company's issues run much deeper than that.
The biggest problem is that the company's management team has made a series of missteps over the last few years that made matters much worse. Here's a look back at some of their head-scratching moves that contributed to its impending demise.
In late 2014, Chesapeake Energy made what seemed like a brilliant move at the time. The company unloaded some of its Marcellus and Utica Shale assets to Southwestern Energy for roughly $5 billion in cash. That move helped fortify its financial position during a deep oil price downturn.
Source Fool.com
