Chesapeake Energy says it's been subpoenaed over its accounting practices
(A Chesapeake Energy Corp. worker takes a break at a Chesapeake oil-drilling site on the Eagle Ford shale near Crystal City, Texas.Reuters/Anna Driver)
There's more bad news for Chesapeake Energy.
In a regulatory filing on Thursday, the company said the Department of Justice served it a subpoena, asking for information about accounting practices for the purchase of oil and gas properties, how it classified them, and "related matters."
The company also got DOJ, Postal Service, and state subpoenas related to its royalty-payment practices.
Chesapeake said it had talked with the postal service and state-agency representatives and continues "to respond to such subpoenas and demands."
The company has worked to reduce its debt and write down assets amid the collapse in crude-oil and natural-gas prices. It has taken $16 billion in impairments on its oil and gas fields since 2015, according to Bloomberg.
The company's shares fell by as much as 5% in early trading. They tumbled on Tuesday after a representative of activist investor Carl Icahn resigned from the company's board.
That happened one week after Icahn slashed his stake in the company to 4.6% from 9.4% — a cut of over 50% — for "tax planning purposes."
(Investing.com)
Chesapeake reported a sixth straight quarterly loss in Q2.
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