(Reuters) - Chesapeake Energy Corp said on Tuesday it will seek shareholder support in April for a reverse stock split that could range between one for 50 to one for 200 shares.
The move could boost the share price of the troubled oil and gas producer above $1 and help it stay listed on the New York Stock Exchange.
The exchange’s listing norms mandate that a stock’s average trading price over a 30-day period should be above $1 per share. If a company fails to meet that requirement, the NYSE notifies concerned companies and gives them a grace period to bring the stock price above that level.
Chesapeake Energy was notified in December and it said it will undertake a reverse stock split to boost the share price.
Chesapeake Energy shares fell 5.4% to 15 cents in extended trading. It had fallen nearly 28% on Monday due to a steep fall in oil prices, an outcome of price war between Saudi Arabia and Russia.
The company has about $9 billion in total debt as of 2019 end. It has borrowed billions to acquire drill properties but has struggled to pay off debt with gas prices at around two-decade lows.
Chesapeake Energy warned bit.ly/2THjvRc that the shares could still be delisted if their price falls to a level considered "abnormally low" by the NYSE.
Reporting by Shariq Khan and Munsif Vengattil in Bengaluru; Editing by Arun Koyyur
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