Chesapeake Energy receives $3 billion loan - 21 News Now, More Local News for Youngstown, Ohio -

Chesapeake Energy receives $3 billion loan

  • More NewsMore>>

  • Fracking foes cringe as unions back drilling boom

    Fracking foes cringe as unions back drilling boom

    Sunday, April 20 2014 9:25 PM EDT2014-04-21 01:25:56 GMT
    PITTSBURGH (AP) - After early complaints that out-of-state firms got the most jobs, some local construction workers and union members in Pennsylvania, Ohio and West Virginia say they're now benefiting in a big way from the Marcellus and Utica Shale fracking boom.That vocal support from blue-collar workers complicates efforts by environmentalists to limit drilling.The Laborers' International Union, or LIUNA, says that construction work its members do on large pipeline jobs in Pennsylvania and ...More >>
    PITTSBURGH (AP) - After early complaints that out-of-state firms got the most jobs, some local construction workers and union members in Pennsylvania, Ohio and West Virginia say they're now benefiting in a big way from the Marcellus and Utica Shale fracking boom.That vocal support from blue-collar workers complicates efforts by environmentalists to limit drilling.The Laborers' International Union, or LIUNA, says that construction work its members do on large pipeline jobs in Pennsylvania and ...More >>
  • Ohio hog farms hit by disease that kills baby pigs

    Ohio hog farms hit by disease that kills baby pigs

    Sunday, April 20 2014 9:22 PM EDT2014-04-21 01:22:01 GMT
    TOLEDO, Ohio (AP) - Hog farms in Ohio are reporting cases of a relatively new disease that kills newborn pigs.The state's agriculture department says it has recorded a couple hundred confirmed cases of the virus across Ohio.The disease first found a year ago causes baby pigs to become dehydrated and die.Severe strains of the virus can wipe out a farm's entire supply of baby pigs.The U.S. Department of Agriculture recently said the die-off has had a hand in shrinking the nation's pig herd by 3...More >>
    TOLEDO, Ohio (AP) - Hog farms in Ohio are reporting cases of a relatively new disease that kills newborn pigs.The state's agriculture department says it has recorded a couple hundred confirmed cases of the virus across Ohio.The disease first found a year ago causes baby pigs to become dehydrated and die.Severe strains of the virus can wipe out a farm's entire supply of baby pigs.The U.S. Department of Agriculture recently said the die-off has had a hand in shrinking the nation's pig herd by 3...More >>
  • Gender gap under Ohio governor nearly $10 an hour

    Gender gap under Ohio governor nearly $10 an hour

    Sunday, April 20 2014 9:13 PM EDT2014-04-21 01:13:55 GMT
    DAYTON, Ohio (AP) - A newspaper investigation has found the average pay gap between men and women in the offices of four of Ohio's five elected statewide officials has grown to almost $10 an hour, as it's shrunk to under a dollar across the rest of state government.The Dayton Daily News reports (http://bit.ly/1jWcGS7 ) women working in Republican Gov. John Kasich's (KAY'-siks) office earn $9.81-an-hour less, on average, than men. That's the highest gender pay gap among statewide officeholders...More >>
    DAYTON, Ohio (AP) - A newspaper investigation has found the average pay gap between men and women in the offices of four of Ohio's five elected statewide officials has grown to almost $10 an hour, as it's shrunk to under a dollar across the rest of state government.The Dayton Daily News reports (http://bit.ly/1jWcGS7 ) women working in Republican Gov. John Kasich's (KAY'-siks) office earn $9.81-an-hour less, on average, than men. That's the highest gender pay gap among statewide officeholders...More >>

NEW YORK (AP) - Chesapeake Energy Corp. has received a $3 billion loan from Goldman Sachs and Jefferies Group, giving the company more time to sell assets and lower its debt.

Chesapeake has been aggressively selling oil and gas assets, but its stock tumbled Friday after the company suggested that some of its planned sales could be delayed. Investors, who worried about a cash crunch if any sales were delayed or halted, sent Chesapeake's stock down 13.8 percent to close at $14.81 on Friday.

But the Oklahoma City company's shares climbed 3.7 percent to $15.35 in after-hours trading on news of the unsecured loan.

"This short-term loan from Goldman and Jefferies provides us with significant additional financial flexibility as we execute our asset sales during the remainder of 2012," Chairman and CEO Aubrey McClendon said in a statement.

Chesapeake said late Friday that it plans to complete $9 billion to $11.5 billion in asset sales during the remainder of 2012 and will use part of the proceeds from those sales to pay back the loan. The company previously outlined plans to sell as much as $14 billion of assets this year.

Chesapeake anticipates closing on the sale of its Permian Basin property in Texas and its Mississippi Lime joint venture during the third quarter, saying it has received strong interest for both assets from potential buyers.

Chesapeake also said that it will use the loan's net proceeds to repay borrowings under an existing revolving credit facility. The new facility expires on Dec. 2, 2017.

Shares of the company had drifted lower earlier on Friday after a published report said the company didn't tell investors about $1.4 billion in liabilities.

The Wall Street Journal reported that Chesapeake has raised $6.4 billion since 2007 by signing oil and gas production deals with a number of banks. Those deals are essentially debts that Chesapeake must repay with oil and natural gas. The Journal said the full cost of meeting those obligations over the next 10 years wasn't disclosed.

Chesapeake spokesman Michael Kehs disagreed. He said a portion of those liabilities were included in a May 1 regulatory filing as part of its operating costs for 2012. Kehs said the rest of the $1.4 billion is reflected in an estimate of future net revenue from Chesapeake's oil and natural gas reserves, which the company put at $48 billion in a Feb. 29 regulatory filing.

A series of negative headlines have called Chesapeake's leadership and oversight into question recently. During the past few weeks, news reports revealed that McClendon took out personal loans from a company while that company was planning to buy Chesapeake assets. Reuters also reported that McClendon ran a private hedge fund that made bets on the price of oil and natural gas - commodities that Chesapeake produces.

Chesapeake has stripped McClendon of his board chairmanship. It's also ending a program that allows McClendon to make personal investments in the company's wells. On Friday, Chesapeake said McClendon received $108.6 million from January to April from sales of company well assets.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • SpotlightSpotlightMore>>

  • Updated

    The Scrappers host “POPS at the Ballpark” featuring the Youngstown Symphony Orchestra

    The Scrappers host “POPS at the Ballpark” featuring the Youngstown Symphony Orchestra

    Tuesday, April 15 2014 2:04 PM EDT2014-04-15 18:04:57 GMT
    NILES, Ohio – The Mahoning Valley Scrappers and the Youngstown Symphony Orchestra are excited to host one of the Valley's premiere summer events, POPS at the Ballpark,More >>
    NILES, Ohio – The Mahoning Valley Scrappers and the Youngstown Symphony Orchestra are excited to host one of the Valley's premiere summer events, POPS at the Ballpark, presented by Stanley E. Shearer with Northwestern Mutual and 21 WFMJ on Saturday, August 23, 2014 at Eastwood Field.More >>
  • Around the WebMore>>

  • GM boosting China production capacity to 5 million

    GM boosting China production capacity to 5 million

    Sunday, April 20 2014 10:52 AM EDT2014-04-20 14:52:53 GMT
    Sales of GM-brand vehicles in China should reach 5 million next year, and Cadillac sales will double to 100,000, the president of General Motors said Sunday.More >>
    The president of General Motors said Sunday that the company and local partners are boosting production capacity for GM-brand vehicles in China to 5 million.More >>
  • Ohio couple married 70 years die 15 hours apart

    Ohio couple married 70 years die 15 hours apart

    Sunday, April 20 2014 9:03 AM EDT2014-04-20 13:03:14 GMT
    NASHPORT, Ohio (AP) - An Ohio couple who held hands at breakfast every morning even after 70 years of marriage have died 15 hours apart.Helen Felumlee (FEHL'-uhm-lee) of Nashport in central Ohio died April 12. She was 92. Her husband, 91-year-old Kenneth Felumlee, died April 13.The couple's children say the two met as teenagers and had been inseparable since then.The Zanesville Times Recorder reports (http://ohne.ws/1in7erG) that the pair married Feb. 20, 1944, and raised eight children.Their...More >>
    NASHPORT, Ohio (AP) - An Ohio couple who held hands at breakfast every morning even after 70 years of marriage have died 15 hours apart.Helen Felumlee (FEHL'-uhm-lee) of Nashport in central Ohio died April 12. She was 92. Her husband, 91-year-old Kenneth Felumlee, died April 13.The couple's children say the two met as teenagers and had been inseparable since then.The Zanesville Times Recorder reports (http://ohne.ws/1in7erG) that the pair married Feb. 20, 1944, and raised eight children.Their...More >>
  • Easter Bunny train sparks New Jersey brush fires

    Easter Bunny train sparks New Jersey brush fires

    Sunday, April 20 2014 8:31 AM EDT2014-04-20 12:31:46 GMT
    POHATCONG TOWNSHIP, N.J. (AP) - A train carrying the Easter Bunny in northwestern New Jersey has ignited several small brush fires.The Express-Times newspaper in Easton, Pennsylvania, reports the fires occurred Saturday in Pohatcong Township and Phillipsburg. No major property damage is reported. A firefighter from the New Jersey state forest fire service fell and dislocated his hip.Huntington Volunteer Fire Company Chief Peter Pursell tells the newspaper the diesel en...More >>
    POHATCONG TOWNSHIP, N.J. (AP) - A train carrying the Easter Bunny in northwestern New Jersey has ignited several small brush fires.The Express-Times newspaper in Easton, Pennsylvania, reports the fires occurred Saturday in Pohatcong Township and Phillipsburg. No major property damage is reported. A firefighter from the New Jersey state forest fire service fell and dislocated his hip.Huntington Volunteer Fire Company Chief Peter Pursell tells the newspaper the diesel en...More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms