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Chesapeake (CHK) must raise at least $7B through asset sales this year and another $2B next year...

Chesapeake (CHK) must raise at least $7B through asset sales this year and another $2B next year to comply with credit line covenants, Jefferies calculates, and to get there it may be forced to part with some of its prized assets in undeveloped oil shale fields in Ohio and south Texas. The current market environment makes CHK's plan to spin off its oilfield services subsidiary "unlikely."
Comments (7)
  • Try KiOR or Forbes Energy Services (FES)--under 5. BLDR is also one to ride if you've got the time to grab cyclical profits.
    29 May 2012, 05:44 PM Reply Like
  • If they sell off their best assets, then ppl will have to greatly revise their valuation models and prices will come way down. Having to sell 9B in assets just to stay in compliance with covenants says they are in far worse shape than ppl think and it may be beyond Icahn's ability.
    29 May 2012, 06:15 PM Reply Like
  • Afraid the CHK board just doesn't get it.....
    29 May 2012, 06:22 PM Reply Like
  • Never been a better time to CVX to make an offer.
    29 May 2012, 08:37 PM Reply Like
  • CHK is no different from ATPG.

     

    Beware.
    29 May 2012, 09:11 PM Reply Like
  • I never thought that ATPG was so casual with shareholder money, after the Macondo blowout shut everything down they went into survival mode. ATPG is just one major oil strike from being a $15 stock again. CHK has debt issues but also has some very high quality assets and will rise to the mid-twenties again, soon.
    29 May 2012, 09:25 PM Reply Like
  • To hold or not to hold. that is the question.
    30 May 2012, 12:02 PM Reply Like
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