Chesapeake Energy (NYSE:CHK) advanced in early New York trading after the energy producer said it will trim its workforce by 15% to survive falling oil and gas prices.
The shares, which have lost two-thirds of their value this year, gained as much as 2.4% to $6.95 as of 8:37 a.m.
Chesapeake expects to post third-quarter charges of $55.5mln related to the move, the Oklahoma City, Oklahoma-based company said in a regulatory filing late on Tuesday.
Chesapeake had about 5,000 employees. On Tuesday, 740 of them were laid off, the company said.
The company has cut rig operations and slashed capital expenditures after failing to offset the plunge with higher production
Large U.S. energy companies have written down the value of their oil fields this year as a rout in commodities prices has made properties across the country not worth drilling.
Last month, Chesapeake reported a sharp loss for the second quarter, impacted by a write-down of $4.02bn on some properties.