Lower oil demand predictions by OPEC and the International Energy Agency combined with coronavirus impact resulted in Chesapeake Energy Corp. shares dropping Thursday in trading by 2.80% and below the 50-cent a share mark for the first time in 26 years.
It came after the International Energy Agency’s oil demand assessment was released. The IEA cut its prediction on oil demand growth this year by 365,000 barrels a day to 825,000 barrels a day, the lowest level in 9 years. The cuts are in response to the spread of China’s coronavirus.
The IEA release came after OPEC cuts it 2020 growth outlook by 230,000 barrels a day to 990,000 barrels a day.
During Thursday afternoon trading, Chesapeake stock fell 1.2% to 49.83 cents. The last time it traded below 50 cents a share was Jan. 21, 1994.
Chesapeake’s stock has plunged 80% in the past year.
The company also made a filing this week with the Securities Exchange Commission which showed that 8.8% of its shares are owned by the Carlyle Group Management LLC. Carlyle owns 172,897,386 shares in the company.
The Carlyle Group is a global investment firm with $224 billion of assets under management across 374 investment vehicles, according to its website. Founded in 1987 in Washington, DC, Carlyle has grown into one of the world’s largest and most successful investment firms, with more than 1,775 professionals operating in 32 offices in North America, South America, Europe, the Middle East, Africa, Asia and Australia.