No wonder Chesapeake was pushing so hard for the Pickens’ plan.
By Daniel at 15 October, 2008, 11:26 pm
Chesapeake said it expects total cash inflows of about $7.8 to $9 billion in 2009, down from its prior forecast for about $9.9 billion to $11.5 billion, according to a filing with regulators.
Late Tuesday, the natural-gas company said it expects fourth-quarter production of 197-201 billion cubic feet. Its fourth-quarter cash income is seen at $340-$450 million, if it follows through with the sale of key business units.
Chesapeake also cut its 2009 production estimate to 893-913 Bcf, down from prior estimates of 943-963 Bcf. The company also expects 2010 natural gas production of 1,032-1,072 Bcf, down from prior estimates of 1,122-1,162 Bcf.
Chesapeake said its fourth-quarter production and cash flow forecasts reflect anticipated sales by the company of:
Properties for approximately $450 million in a volumetric production payment.
Producing properties in South Texas and undeveloped leasehold in the Marcellus Shale and other areas for approximately $2.3 billion.
Chesapeake CEO Aubrey McClendon is also among executives from the energy sector forced to sell shares of their companies to cover personal margin calls.
McClendon said in a filing last Friday that he sold about 31 million shares of Chesapeake at prices ranging from $13 a share to $24 a share.
http://www.marketwatch.com/news/story/chesapeake-hard-hit-money-crunch-production/story.aspx?guid=%7B4A6E692F%2DF959%2D4F09%2D960C%2D9832D9F0418A%7D
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