Why Chesapeake Energy Corporation Stock Plunged 46% in February
Shares of Chesapeake Energy Corporation (NYSE: CHK) declined a painful 46% in February, according to data from S&P Global Market Intelligence. In the first two months of 2020 the stock has lost two-thirds of its value. By comparison, the S&P 500 Index was down roughly 8% in February and for the two-month span. The broad market sell-off driven by COVID-19 was clearly an issue for this oil and natural gas driller, but it was only one piece of the bigger puzzle here.
Chesapeake Energy has been struggling under the weight of a heavy debt load. Low oil and natural gas prices haven't helped. So the coronavirus, which has reduced demand in the energy industry at a time when supply is already high, hasn't been helpful. As soon as COVID-19 news started to flow out of China, oil and gas prices started to fall.
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Source Fool.com
