Seeking Alpha

Chesapeake Energy flying higher after crushing estimates

  • Has Chesapeake (CHK +6.5%) turned the corner? The stock is flying after Q2 results crushed earnings and revenue estimates, daily gas production jumped 7% Y/Y, and full-year oil production guidance is raised.
  • Sterne Agee upgrades shares to Neutral on the strong operating results, fading near-term liquidity risks and new hedges providing cash flow visibility through 2014; "new CEO Lawler is showing early success on capital efficiency initiatives, evidenced by strong earnings growth with lower capital intensity.”
Comments (2)
  • what do I know
    , contributor
    Comments (1049) | Send Message
    When is the Analyst from GS coming with Sell recommendation as it did with F .
    1 Aug 2013, 01:03 PM Reply Like
  • GamCap LLC
    , contributor
    Comments (427) | Send Message
    Blow out revs+earnings, up to 3.7 bil in 2013 asset sales and a "thorough review of capital structure..JV's.." and a further push for efficiencies, raise their margins to those in the upper tier of E+P companies...a la Anardarko. Our take, could see...


    * CHKR shares will be swapped for CHK...when we are north of $30


    * RTC(Resevour Tech Center), wasn't even mentioned in their online presentation...1st time....ever...they will be sold or spun off.


    * Could see further re-tooling of their debt, push it further out...get rid of the converts, replace w/conventional debt


    *IPO the services div. this winter


    * Sell the 30% stake in FTI in early 2014


    * Could exit one of their core plays,,,maybe NE Marcellus, Niobara


    Also, was touched on during the call, could see a share issuance...maybe if we can see something north of $40....raise a cpl billion.


    This is for sure, this CEO has just begun.
    1 Aug 2013, 07:44 PM Reply Like
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