Chesapeake Energy Corp. pledged almost all of its natural gas fields, real estate and derivatives contracts to maintain access to a $4 billion line of credit as the shale gas producer grapples with falling energy prices, Bloomberg reports.
Chesapeake amended a secured revolving credit agreement that matures in 2019 with lenders, who agreed to postpone the next evaluation until June 2017, the Oklahoma City-based company said. In exchange, Chesapeake pledged “substantially all of the company’s assets, including mortgages encumbering 90% of all the company’s proved oil and gas properties” as collateral.
Chesapeake Energy is America's second-largest natural gas producer, behind ExxonMobil and the 12th largest producer of oil and natural gas liquids in the US.
