Chesapeake Energy Corporation's Turnaround Is Just Getting Started

Of all the oil patch bankruptcies of the past two years, Chesapeake Energy’s fall from grace has been one of the most public. Once touted as the leader of the North American shale revolution, Chesapeake’s decline has been well documented. Hamstrung by a mountain of debt and falling hydrocarbon prices, shares in Chesapeake have lost 86% of their value since the beginning of 2011.

Like many shale producers, Chesapeake is now struggling to stay alive, and management is concentrating on strategic initiatives to lower the company’s debt pile and return the group to profitable growth as investors become restless.

Unfortunately, Chesapeake’s management failed to...