Chesapeake Energy (CHK) Announces Suspension of Qtr. Preferred Dividends
Get Alerts CHK Hot Sheet
Overall Analyst Rating:
NEUTRAL (= Flat)
Dividend Yield: 2.4%
Revenue Growth %: -36.4%
Join SI Premium – FREE
Chesapeake Energy Corporation (NYSE: CHK) announced today that it has suspended payment of dividends on each series of its outstanding convertible preferred stock effective immediately.
Doug Lawler, Chesapeake's Chief Executive Officer, commented, "The board and management believe this decision is in the best long-term interest of all Company stakeholders. Today's decision to suspend our preferred stock dividends will allow the company to retain approximately $170 million of additional cash per year and use these funds to purchase debt at significant discounts in the near term. Given the current commodity price environment for oil, natural gas and natural gas liquids, we believe that redirecting this cash toward debt retirement provides better returns for the Company. We currently have senior debt securities trading at significant discounts, and we will continue to take advantage of that within the coming year."
Suspension of the dividend does not constitute an event of default under the Company's revolving credit facility or outstanding bond indentures.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Semtech (SMTC) climbs as Q4 revenue and guidance surpass expectations
- Coinbase (COIN) CEO Armstrong on X: Great progress on the SEC case - and huge win for self-custodial wallets
- John Wiley & Sons, Inc. (WLY) Declares $0.35 Quarterly Dividend; 3.8% Yield
Create E-mail Alert Related Categories
Corporate News, Dividends, Hot Corp. News, Hot Dividends, Management Comments, Trader TalkRelated Entities
DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!