Carl Icahn tells CNBC that natural gas prices will rebound, and Chesapeake (CHK +1.1%) is poised...


Carl Icahn tells CNBC that natural gas prices will rebound, and Chesapeake (CHK +1.1%) is poised to benefit: "Aubrey [McClendon] is a very bright guy and he's put a lot of great assets together... Now they have to cut expenses, but I think they can." On CHK's board shakeup, which he helped to instigate: "The shareholders control the company now."

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Comments (7)
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    Even smart guys do stupid stuff sometimes, I don't know if I'd give McClendon another shot though...
    3 Jul 2012, 09:51 AM Reply Like
  • bdoeden
    , contributor
    Comments (63) | Send Message
     
    Are you in the market to moralize or to make money? I'm assuming that you moralizers either sold your stock or went short with all the noise lately while the smart guys bought shares. Who is making money-the Moralizers or the Smart Guys? This company would not be what it is without Aubrey and Ward.
    3 Jul 2012, 10:19 AM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    You responded to my post but I'm not sure why; morals never came up in either the news post or my comment.

     

    I don't think the 'scandals' if you will were smart business wise (has nothing to do with morals), they created instability in the company, and because of the money situation they have to sell assets that might be valuable down the road.

     

    Never owned CHK, and probably never will, I just don't like Nat Gas at this point. When it sees some price recovery then it might be a good time to look into it.
    3 Jul 2012, 10:29 AM Reply Like
  • Factzplz
    , contributor
    Comments (306) | Send Message
     
    These are fabricated lie scandals. It started with the Reuters' lie/innuendo of his borrowing against his share of the wells, which was approved by shareholders in 1993, again in 2005, and had 3 pages of disclosures in the annual proxy, that specifically stated borrowing was permitted.

     

    And who would have though MCClendon had $1.1 billion in pocket change and would not borrow - I expected it, so should you.

     

    He as done nothing illegal, immoral, or against the best interest of shareholders. If you disect each "news" story the lies, half truths, and innuendo jump out and slap you in the face -- IF you actually take the time to think.

     

    In the past five years he earned shareholders $7 billion of equity, has potential reserves of 60 billion BOE (the largest U.S. reserves of any company), contained on 24,000 sq. miles (net) of leaseholds, also the largest of any U.S. oil company.

     

    I am a long-time shareholder and PROUD of what McClendon has done to make America energy independent - more than any other CEO.

     

    Next time, ask yourself, "Did I think, or did I just believe?" Paper does not refuse ink (any lie can be printed), and, "A microphone broadcasts all words" - so Kate Kelly of CNBC can push her lies as much as she wants, and they will never be the truth.
    4 Jul 2012, 12:10 AM Reply Like
  • wald22
    , contributor
    Comments (407) | Send Message
     
    Third Point Hedge Fund will I believe bring out some bad news. To me they are the one of many that are feeding Reuters. As I see it there is a big resource write down comming. IF CHK made profits and paid taxes, to reduce that tax obligation or getting taxes paid back it would make sense. Instead they will be forced to write down assets as leases expire. They need to drill like hell, yet must cut expenses. If I was CEO of CHK, I would drill like hell. To pay for that I would issue more stock even if it means diluting present shareholders. To me it makes more sense to drill and hold the leases by production then just letting them expire. There so many leaseholders pissed off at CHK that CHK is going to have to put up a lot more money per acre to hold on to them. Too many lawsuits are being filed against CHK by leasholders who feel CHK screwed them over.
    3 Jul 2012, 01:54 PM Reply Like
  • Factzplz
    , contributor
    Comments (306) | Send Message
     
    Of 150 rigs only 12 are drilling for gas to hold leases -- fact.

     

    "Write down assets as leases expire." What assets? What values? What are you talking about?

     

    When I got my accounting degree they never explained things like you do. Can you give me the FASB rule that explains, "If CHK made profits and paid taxes..."

     

    It seems you are unaware of the well articulated plan McClendon laid out in 2008 and has stuck to, with tremendous success. This "cash flow crisis" was never a crisis until Reuters made it one, as it was being executed as planned. When the Permian asset sells, CHK will have enough cash to pay down $4 billion of debt, and have enough operating cash.

     

    Then the shorts will have to "reconsider" their positions.
    4 Jul 2012, 12:18 AM Reply Like
  • wald22
    , contributor
    Comments (407) | Send Message
     
    @Factsplz - Lets hope that they can get $5 or $6B for the Permian assets. That could pay off the recent $4B borrowed from GS and pay a few bills. But it does not pay down any long term debt. They are more of a lease real estate firm then producer of energy. In the 23 years of existence they have sold $5.5B worth of energy, yet their debt is twice that and if one should account for the unacounted debt, one could double that. The leased ground they hold is supposed to have something there that has value. Al of this leased ground is supposed to be worth so much. But is it. On average they spend $8m on a wells lifetime and get back $4.7m. 2/3 of their wells are uneconomic, 1/2 of the new ones are after 2 years. We the people have on average suffered through the dot.com and real estate bubble. CHK is suffering from the lease real estate bubble bursting and natural gas prices being in the ditch.
    4 Jul 2012, 05:18 AM Reply Like
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