The Forensic Accountant
Research analyst, oil & gas, energy

Chesapeake Granite Wash Trust: A Forecast Of Future Distributions

Chesapeake Granite Wash Trust (NYSE:CHKR) is an oil and gas trust with royalties for wells in western Oklahoma. As those familiar with my articles know, I analyze trusts using a bottom-up, engineering-style model that considers forecasts of production, sales prices, and expenses and unique underlying circumstances. This article discusses the application of the model to CHKR.

CHKR has underperformed its original targets due to terrible well production and a bad bet on oil prices

CHKR was formed in 2011 by Chesapeake Energy (NYSE:CHK) with a set of initial wells and based on the promise that additional wells, using new technologies, would be added over the ensuing five years. Unfortunately, these technologies and CHKR's production have grossly...

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