There are certain rules you have to follow if you want to work in the Oklahoma City media. One of the most important is to never produce a story that criticizes or questions one of our local energy companies. News stories like that are simply not allowed. Instead, you have to write an article that highlights the wonders of CNG, how awesome fracking is, and all the good things corporations like Chesapeake do for our rowing community.
Fortunately for us, Forbes energy reporter Christopher Helman does not live in Oklahoma. That means the local media rules don't apply to him. He gets to be an actual reporter and report on news we may want to know about, including the real scary stuff like how Chesapeake Energy is running out of cash and flirting with bankruptcy.
From a story on Forbes.com:
This morning Chesapeake Energy announced a new financial plan that it hopes will allow it to raise the billions in cash it needs to get through the next year or so without going bankrupt.
The company says it aims to raise $2 billion by spinning off assets from its service company and pipeline division. It expects another $2 billion from upfront sales of future flows from gas fields. And it earmarks another $6 billion or so from the sale of its largely undeveloped acreage in the oil-rich Permian basin. And for good measure, it will raise another $1 billion by issuing more senior debt. The $10-12 billion it hopes to raise is “substantially in excess of the difference between the company’s expected cash flow from operations and its planned capital expenditures.” Gosh I should hope so. Analyst Arun Jayaram at Credit Suisse pegs Chesapeake’s 2012 cash hole at $6 billion.