Chesapeake Energy posts profit after bankruptcy exit, declares dividend

[TexasTowelie]

Chesapeake Energy Corp (CHK.O) on Tuesday reported a quarterly profit of $295 million in its first earnings after emerging from bankruptcy in February.

Once the second-largest U.S. natural gas producer, the company filed for court protection last June, saddled with more than $9 billion debt from overspending on assets and a sudden decline in oil prices and demand from the pandemic.

Chesapeake on Tuesday also declared an annual dividend on its common shares of $1.375 per share. The first quarterly dividend will be paid on June 10.

Shares of the company were up about 5% at $51.50 in extended trade.

Read more: https://www.reuters.com/business/energy/chesapeake-energy-reports-quarterly-profit-after-bankruptcy-exit-2021-05-11/

[sprinkleeninow]

1. $9 billion debt?? That's billion with a 'B'? 9 billion?

I'm kinda sputtering..

[muriel_volestrangler]

2. Not that much, compared to a $295 million profit in one quarter

About $7.8 billion of that debt was converted into equity. That's now produced a profit equivalent to 15% per year.