Chesapeake's (CHK) decision last October to sell its hedges against low gas prices has...

|About: Chesapeake Energy Corpor... (CHK)|By:, SA News Editor

Chesapeake's (CHK) decision last October to sell its hedges against low gas prices has exacerbated the company's cash crunch, left it largely unprotected against low gas prices this year and WSJ calculates losses of around $750M-900M on the positions. Chesapeake has generally been successful with these kinds of levered bets, but acting more like a hedge fund than an exploration company can clearly backfire.