Chesapeake -5% following disappointing production guidance

Chesapeake Energy (CHK -5%) trades sharply lower following disappointing production guidance and plans to cut 2014 capex by 20%.

In the conference call following the news, CHK said its average daily production during December was ~649K boe, well below its 2014 guidance range of 680K-695K; CHK expects Q4 2013 and Q1 2014 will mark its production low point and that it will see a significant Q/Q ramp-up beginning in Q2 (

Brean Capital says capital allocation remains the biggest question mark for CHK, and remains unconvinced CHK can truly compete for capital at a sub $5/Mcf gas price.

CHK's 2014 outlook.

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Comments (5)
  • pauliene
    , contributor
    Comments (481) | Send Message
    lets see if I understand this sell off correctly
    natural gas hits new high for last few years
    and oil is about 96 dollar range
    the negative was, it was so cold in dec and in January they could not get it out to market
    then they cut capital expense 20 percent from last year and will get the same production numbers with a slight increase this year
    then, since product is much higher in price, let alone if it was the same, no one sees increased dollars to the company?
    they have a shortage in numbers from the 200 million mentioned to the questioner who got them up to the billion mark.
    how difficult is it to sell a billion dollars worth of what evers, from land, to buildings to etc.?
    so as natural gas goes from two buck area to five buck area we should be seeing increased dollars?
    even the calls the puts the collars
    anyone able to figure out how much they locked into protection of prices?
    remember, sell a put is bullish
    buy a put is negative
    buy a call is optimistic sell a call is protection
    a collar? who knows for sure<G>
    me? I stay long till the dust settles
    6 Feb 2014, 11:47 AM Reply Like
  • barryray
    , contributor
    Comments (18) | Send Message
    Analysts are anal idiots. This stock is oversold, and a very strong buy.
    6 Feb 2014, 12:25 PM Reply Like
  • bumpski
    , contributor
    Comments (19) | Send Message
    Before Aubrey left he was snapping up the Utica for CHK. Now with his new company he's snapping up Utica dregs. CHK has incredible value there. I wonder if Icahn will snap up some more shares.
    6 Feb 2014, 12:46 PM Reply Like
  • papayamon
    , contributor
    Comments (1317) | Send Message
    i think the selling isn't quite done yet here but in a couple of days there will be a trading opportunity. this with the market popping up today makes me fearful that a down day will really nail chk, short term. i'm not an investor - i'm a trader. those who think it's a strong buy should be happy to grab more at today's price.
    6 Feb 2014, 01:28 PM Reply Like
  • mdenkermd
    , contributor
    Comments (2) | Send Message
    This is a buying opportunity
    6 Feb 2014, 08:13 PM Reply Like
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