The financial leverage would be ok if there was enough cash flow to service the debt. But cash flow has been very insufficient to service the debt let alone fund the capital budget properly. The result has been that the last few property sales have really funded working capital rather than actually reducing the debt. Some observers would call this a long term debt (death) spiral that few companies escape.
Chesapeake Energy: Elephant Temper Tantrum $CHK http://www.seekingalpha.com/article/4160304