Reuters, citing people familiar with the matter, said Chesapeake Energy has held talks with creditors about a possible loan that could keep it operating while it navigates bankruptcy proceedings.
The loan, referred to as debtor-in-possession financing, could total roughly $1 billion, one of the sources told Reuters.
Chesapeake Energy's talks about a potential bankruptcy filing are in the early stages, and the company has made no final decisions about how it plans to address its debts, the sources cautioned, Reuters said.
Chesapeake Energy didn't immediately respond to a request for comment from Reuters.
Shares of Chesapeake Energy fell more than 41% in in trading Thursday to $15.75.
While the stock has fallen about 80% this year, shares have had a recent strong run as oil prices have rebounded from unprecedented negative territory.
Last week, the oil and hydrocarbon driller announced it adopted a poison pill to thwart any takeover attempts spurred by its low stock price.
Earlier this month, Chesapeake shareholders approved a reverse stock split of one share for as many as 200 shares. The company is among the more financially precarious of the oil majors, with $192 million of bonds coming due in August out of a total debt load of more than $9 billion, according to Bloomberg.
Moody's cut Chesapeake’s credit rating into junk territory earlier in April.