Chesapeake Energy Corporation (NYSE:CHK) recently unleashed a statement outlining that it wasn’t desperate to sell off its assets. It would only sell those assets on the condition it would be given the most appropriate value.
It is a matter has sparked much talk among those following closely on the progress of the company. The main concern for them was that it doesn’t make sense how the company could be so firm on its decision yet its debt-laden balance sheet needed to be repaired as soon as possible.
Doug Lawler, who happens to be the company’s CEO while moving out of a business conference that was interviewed by several news reporters on the matter. He asserted that it would be terrible mistake if they would have moved ahead to sell the assets at a throw away price. He added that he was much aware about the great need to improve the balance sheet but insisted that selling anything they had out of desperation wasn’t a clever move.
The accumulation of debt has been escalating with the passage of time and the company is considering culling it while at the same time ensuring that its daily operations run on smoothly.
An official working with it while recently being interviewed by several news reporters about the company and the challenges it had been facing narrowed to the simplest details. He revealed that at that point in time the company’s debt stood at $9.97 billion which basically was about three times its market valuation. That was a major cause for alarm according to him adding that it was the reason they had seen it fit to make the earliest moves towards cutting down on it.
Chesapeake Energy is a company just like any other according to the official and thus what it is going through is understandable. He winded up by saying that they were on track and towards achieving immense business success provided they remained persistent.
Several market observers have also expressed their opinions regarding the latest developments. According to them, the company was right for remaining principled despite it going through the most trying times.