While the natural gas rush in the Marcellus Shale has slowed, claims on that gas continue to shift with Chesapeake Energy Corp. using its natural gas as collateral for borrowing.
The result is a mortgage filed earlier this year, and amended a few times with the most recent at the end of June, in a staggering amount — up to $10 billion.
It’s likely the most zeros that have ever turned up on a document at the Wyoming County Recorder of Deeds office.
The mortgage also applies to Chesapeake mineral rights in Ohio, Louisiana, and Oklahoma. The massive document has pages listing every lease Chesapeake has in Wyoming County.
Amid collapsing prices of natural gas, the already highly-leveraged Chesapeake has been selling assets and trying to build liquidity. Part of that has been accessing credit it needs to survive. Earlier this year, the company noted that creditors reaffirmed the company’s borrowing base, the value of collateralized assets of $4 billion, essentially a borrowing limit.Read the whole article now by clicking here.
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