The situation is looking pretty grim at Chesapeake Energy.

Shares are getting pummeled today after the company swung to a first-quarter loss and said it would still be heavily exposed to weak natural gas prices. It is also dealing with a host of controversies related to CEO Aubrey McClendon and his decision to step down from the chairman post.

Earlier this year Chesapeake announced it would slash gas drilling and increase production of more-profitable liquids. Instead, the company yesterday said its gas production will rise 6%.

"Chesapeake may be finding it harder than initially expected to rein in gas production from prolific shale plays," says Biju Perincheril, an analyst at Jefferies & Co. "This is a negative observation for the gas pricing picture."

Chesapeake, the second-largest natural gas producer behind Exxon Mobil, has seen revenues drop as natural gas prices have tumbled to decade lows. A slew of analyst downgrades have hit the company this morning, which are also weighing on the stock.