Why Chesapeake Energy Stock Plunged 37% in March
Shares of Chesapeake Energy (NYSE: CHK) tumbled 37.2% in March, according to data provided by S&P Global Market Intelligence. Weighing on the energy company were dual nosedives in the price of oil and natural gas due to the effect of the COVID-19 pandemic on the U.S. economy.
Oil prices in the U.S. plummeted 54% last month, closing around $20 a barrel, pushing it back to levels not seen since the early 2000s. Natural gas also cratered in March, falling to a 25-year low. These developments weighed heavily on Chesapeake Energy since it will make it nearly impossible for the company to stay afloat, given its massive debt level and near-term maturities.
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Source Fool.com
