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Two directors are betting with their own money that Chesapeake (CHK) is on the rebound. Merrill...

Two directors are betting with their own money that Chesapeake (CHK) is on the rebound. Merrill Miller Jr. bought $498K of stock last week, and newly appointed Brad Martin purchased $355K, the first time two insiders have bought CHK during the same week since last August.
Comments (5)
  • Cherry Picker
    , contributor
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    They're betting with Carl Ichan. Next step--remove McClendon. We're talking breakup value here.
    2 Jul 2012, 05:53 PM Reply Like
  • westelk
    , contributor
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    The McClendon Phoenix attempting to rise from the ashes again? On or about July 23rd we shall see if they made a wise purchase. I expect the public announcement will be a small loss or gain despite the well-publicized financial difficulties. Underneath the optimistic pronouncements, CHK will continue to generate negative cash flow.
    2 Jul 2012, 06:49 PM Reply Like
  • sargon4veritas
    , contributor
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    Is July 23 the expected report of quarterly results or does it relate to a potential sale of part or all interest in CHK's extensive reserve assets?
    6 Jul 2012, 11:15 AM Reply Like
  • Factzplz
    , contributor
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    CHK has generated negative OPERATING cash flow for five years, while it has added $7 billion of profits to its equity and amassed 24,000 sq. miles of leaseholds, with 60 billion BOE.

     

    Anybody who KNOWS the company knows this is part of a strategy well articulated five years ago. It is brilliant, and if CHK never discovers another barrel of oil, CHK already has enough drilling sites for the next 20 years in the most productive oil fields in the country. And with only 13 dry wells of 2,966 drilled last year (some were exploratory in certain fields as discussed on conference calls), it certainly has a grasp on finding oil.

     

    What are other companies going to do?

     

    In the last 9 months of 2011 CHK added more proved reserves than SWN has in total, and SWN has just a slightly lower market cap, only 20% of CHK's reserves, and a similar debt ratio.

     

    Look back at all the noise from the last few years. Every year the same crap, "cash flow shortage." Every year his plan works.

     

    Of course it will show a small OPERATING loss this quarter, and about 300 million BOE added to reserves.

     

    How much is 60 billion BOE worth?

     

    And to Cherry Picker -- no other oil man has done more to make America energy independent, or grown shareholder value faster, and you want to replace him? I think you got your cherry popped.
    2 Jul 2012, 07:04 PM Reply Like
  • Old Rick
    , contributor
    Comments (462) | Send Message
     
    Good comment Factz. I just finished the latest edition of OID whcih was devoted entirely to CHK from the perspective of Staley Cates, Mason Hawkins and Nick Snyder. Also 2 Conf calls with McClendon. The 3 investors (plus presumably Icahn) value CHK at $60.
    6 Jul 2012, 12:22 PM Reply Like
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