Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : KERM'S KORNER -- Ignore unavailable to you. Want to Upgrade?

To: Kerm Yerman who wrote (11650)	7/8/1998 2:58:00 AM
From: Kerm Yerman	Respond to of 15196

CREDIT WATCH / Chesapeake Energy Corp.'s Rtgs Placed on S&P Watch NEW YORK--(BUSINESS WIRE)--July 7, 1998--Standard & Poor's CreditWire 7/7/98--Standard & Poor's today placed its single-'B'-plus corporate credit and senior unsecured debt ratings and single-'B'-minus preferred stock rating on Chesapeake Energy Corp. [NYSE:CHK] on CreditWatch with developing implications. About $1 billion in rated debt securities are affected. The CreditWatch placement follows the announcement that Chesapeake has elected to pursue a sale or merger of the company, and that it will report a $250 million writedown for the quarter ended June 30, 1998. The writedown is largely a noncash asset valuation ceiling test caused by lower oil and gas prices and the accounting treatment for various acquisitions completed during the quarter. Developing implicatoins means ratings could be raised, lowered, or affirmed, depending on the specific buyer or merger partner and the terms of the transaction. Chesapeake is a midsize independent exploration and production company with producing properties in three onshore regions: Oklahoma, the Giddings field of south Texas, and the Louisiana Austin Chalk formation. The reserve base is 1,250 billion cubic feet equivalent (75% gas) and the reserve life is nine years, which is average. -- CreditWire Kerm's note: Chesapeake has at least a 20% interest in Pan East Petroleum.