Chesapeake Cut 740 Jobs

Chesapeake Cuts Jobs
Chesapeake Cuts Jobs

Chesapeake Energy Corp is reducing its workforce by 15%, causing more speculation about the viability and future of the company.

Chesapeake Energy Loses $4.15 Billion | Eagle Ford Shale Play

Chesapeake, the second-largest producer of natural gas in the United States, announced last week that it will lay off 740 of its employees, most from its Oklahoma City office.

The layoffs added fuel to the rumors as analysts predict whether Chesapeake will sell or find partners for its oil and gas fields, with some suggesting that the company is ripe for a takeover.

As you are fully aware, the current commodity price environment continues to be a challenge for our industry and Chesapeake. Over the past year, we have taken significant actions in response to the low commodity prices by reducing our costs and decreasing our capital spending.
— Chesapeake CEO, Doug Lawler

In August,Chesapeake Energy Corp reported second quarter losses of $4.151 billion.  The company said it expects to post third-quarter charges of roughly $55.5 million related to the move.

Other issues facing the shale driller include new claims surface from mineral royalty owners who believe they were swindled by the Chesapeake.

Related: Chesapeake Continues Fight with Mineral Owners

A new lawsuit that involves over $1 billion in unpaid royalty payments was filed in Tarrant County against Chesapeake Energy, accusing the company of deliberately cheating property owners by improperly calculating the price of gas sold at the wellhead and by wrongly deducting expenses.

Chesapeake's operations in the Eagle Ford include 449,000 net acres that produces 105,000 BOE/day.