Daniel R Moore
Long only, portfolio strategy, value, research analyst

Chesapeake Granite Wash - Seriously, This Junk Is Worth $11 Per Share?

I finally gathered the most recent data reported by the Chesapeake Granite Wash Trust (NYSE:CHKR) to perform a quarterly financial review. Honestly I did not find any surprising new information within the financial statements. The Trust still deserves a junk rating at best, and the bad news has been public for over a year. The issues facing the Trust are best summarized in these statements found buried in the notes of the most recent 10-Q:

"[T]he Trust experienced reduced production volumes throughout 2013 and 2014, largely due to higher-than-expected pressure depletion within the AMI."

To emphasize the implications of this severe point the accountants go on to say:

"Low levels of future production will continue to...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details