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More on the Chesapeake (CHK) sales: The Permian Basin assets alone fetched $3.3B - "a little...

More on the Chesapeake (CHK) sales: The Permian Basin assets alone fetched $3.3B - "a little light," says Hedgeye's Kevin Kaiser, as most were looking for $4-6B. He also notes the company was unable to sell its undeveloped Midland Basin acreage and will need to hang onto it. The shares continue higher, +2.7% premarket.
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Comments (2)
  • davidingeorgia
    , contributor
    Comments (2713) | Send Message
     
    Watching Chesapeake operate these days is like seeing someone who has gone on a multi-year eating binge and blown up way, way bigger than is healthy for them to be, and who suddenly realizes that the class reunion is coming up, and they're about 8-10 sizes beyond fitting into anything other than "fat" clothes. Chesapeake is at the crash diet phase of this cycle now. It might be a company worth investing in again...in a year or two or five.
    12 Sep 2012, 07:39 AM Reply Like
  • Russ Fischer
    , contributor
    Comments (2919) | Send Message
     
    $3.3 billion for 5.7% of the company's production. That implies the rest of the comapany is worth about $58 bill, give or take. Minus another $10 in debt and you have a company worth $48 billion or $80/share.
    I think I'll hang on and let this thing continue to heal.
    12 Sep 2012, 09:07 AM Reply Like
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