Chesapeake Energy Announces Entry into Material Agreements and Other Events

On October 28, 2024, Chesapeake Energy, operating as Expand Energy Corporation, disclosed the signing of multiple significant agreements and the completion of key events. As detailed in a Form 8-K filing with the U.S. Securities and Exchange Commission, the company’s actions demonstrate strategic financial moves aimed at enhancing its position in the market.

In a step described as the “Investment Grade Date Event,” Chesapeake Energy entered into several Supplemental Indentures on October 28, 2024. These agreements, including the Tenth Supplemental Indentures with Regions Bank and U.S. Bank Trust Company, National Association, pertain to various Senior Notes due in the upcoming years. The completion of these agreements resulted in the release of subsidiary guarantors from their obligations under the respective Indentures.

Moreover, as part of the Investment Grade Date Event, certain restrictive covenants under the 2026 Indenture and the 2029 Indenture have been lifted, providing Chesapeake Energy with increased flexibility moving forward.

Additionally, on the same date, Chesapeake Energy successfully met the conditions established for the “Investment Grade Date” under its credit agreement dated December 9, 2022. This achievement led to the automatic modification of the credit agreement in its entirety, with JPMorgan Chase Bank, N.A., as the administrative agent and collateral agent. The company saw the release of liens and guarantees previously provided by Chesapeake Energy and its subsidiaries, marking a significant development known as the “Investment Grade Date Event.”

As part of the Credit Agreement, Chesapeake Energy retains aggregate commitments of $2.5 billion, alongside specific sublimits for various financial operations. The agreement outlines restrictive covenants typical to investment grade credit facilities, covering areas such as priority indebtedness, mergers, dividends, liens, asset sales, and transactions with affiliates. Furthermore, the agreement includes provisions for maintaining a debt to capitalization ratio not exceeding 65%, along with customary events of default and remedies associated with such credit facilities.

Borrowings under the Credit Agreement may be in the form of alternate base rate loans or term SOFR loans at Chesapeake Energy’s discretion. Interest payment terms vary for each type of loan, with periodic rates based on the Company’s unsecured debt ratings.

Chesapeake Energy provided copies of the Supplemental Indentures and the Credit Agreement as exhibits accompanying the Form 8-K filing, enabling stakeholders to delve further into the specifics of the agreements. The company signed the document on November 1, 2024, affirming the validity and completeness of the disclosed information.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Chesapeake Energy’s 8K filing here.

Chesapeake Energy Company Profile

Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming.