Chesapeake Energy stock falls to new low

Shares of Oklahoma City-based Chesapeake Energy were down $5.60, or 15 percent, at $32.26. The shares earlier traded as low as $32.09.

Oil prices plunged as much as $10 a barrel Monday as a U.S. financial bailout plan failed to win legislative approval, increasing fears a prolonged economic downturn that could sharply curtail energy demand.

Light, sweet crude for November delivery at one point sank as much as $10.06 to $96.83 before recovering to $98.26. It was crude's lowest trading level since prices edged back below $100 earlier this month. Crude previously hadn't traded that low since February.

Natural gas futures lost 39.2 cents to $7.236 per 1,000 cubic feet.

Last week, Chesapeake Energy said last week that it is cutting its capital budget by $3.2 billion, or 17 percent, from the second half of 2008 through 2010. The company said the move is in response to an approximately 50 percent decrease in natural gas prices since June 30 and concerns about the possibility of a gas surplus in advance of increased demand from the U.S. transportation sector.