Facing de-listing from the NYSE, oil and gas driller Chesapeake Energy Corp. is planning a set of measures to regain compliance with NYSE listing standards which could include a reverse stock split, the company said in a Dec. 13 release.
The company on Dec. 10 received a notice from the NYSE that the company has failed to meet the exchange's minimum price closing criteria of at least $1.00 over a consecutive 30 trading-day period.
The measures Chesapeake is looking to take to get back in good standing include carrying out its existing capital and operating program, reducing debt through capital market transactions and asset sales, and possibly reverse stock split, subject to shareholder approval during the company's annual shareholder meeting in May 2020.
The company said that it has six months after getting the notice to regain compliance. During that period, Chesapeake's shares will continue trading on the exchange with the addition of a suffix indicating that its shares are below compliance as CHK.BC.
Chesapeake holds interests in natural gas resource plays, including the Marcellus in the Appalachian Basin, the Eagle Ford Shale in Texas and the Anadarko Basin of Oklahoma.