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Chesapeake Energy (CHK): Q3 EPS of $0.10 in-line. Revenue of $3.0B (-25% Y/Y) beats by $600M....

Chesapeake Energy (CHK): Q3 EPS of $0.10 in-line. Revenue of $3.0B (-25% Y/Y) beats by $600M. Results exclude noncash after-tax impairment of $2B tied to carrying value of natgas and oil properties. Shares +2.1% AH. (PR)
Comments (9)
  • ShipOfFools
    , contributor
    Comments (15) | Send Message
     
    This PROVES CHK is back! All the naysayers and all the negativity. If we ever get a stronger NatGas price (Which we will soon) this stock is going to $40+ a share!! Great work CHK!!! Congrats!!
    1 Nov 2012, 04:27 PM Reply Like
  • edrose3536
    , contributor
    Comments (2) | Send Message
     
    Another no-brainer...Where are our brilliant elected officials in Washington going to help create jobs. The next major growth industry in the US is natural gas. This is not a question of if, it is only a question of when. And as we progress in the future with liquification facilities on the Sabine Pass the demand for and price of natural gas will go significantly higher. Certainly one of the leaders in the industry is CHK, which by the way has a book value significantly higher than the current price. This stock could easily double or more in the next three years.
    1 Nov 2012, 04:28 PM Reply Like
  • W. Walker Jr.
    , contributor
    Comments (271) | Send Message
     
    Given the progress CHK has made over the past year, despite their headwinds, I wonder what caused this stock to drop 2%+ in AH?

     

    I am long CHK, just not sure I understand the drop after a pretty decent Q3 report.
    1 Nov 2012, 04:58 PM Reply Like
  • zebra114
    , contributor
    Comments (251) | Send Message
     
    The stock dropped because of the real news of the write downs of $2.06 Billion..... Not good at all!

     

    http://on.mktw.net/VfIpUf
    1 Nov 2012, 05:04 PM Reply Like
  • Deltascared
    , contributor
    Comments (289) | Send Message
     
    Yes Zebra, good point!

     

    However, the loss was one time items.

     

    Compared to where this ship was, this stock should be $30 by now and $40 plus if we had anyone who understood capitalism running the show in Washington.
    1 Nov 2012, 05:30 PM Reply Like
  • NatGasGHshale
    , contributor
    Comments (90) | Send Message
     
    And the $2B in write-downs is just the beginning of CHK write-downs...And add the newest CHK $2B loan to lower the 8+% interest on previous loan...Then add the "Costs, Management/Admin. Fees, Etc." Bankers collect for each and every CHK "loan," "re-loan," "bridge-loan," "limited-partnership fees/payments,"volumetric production payments/fees," etc. etc. etc.
    Add lawsuits, investigations, obese balance sheet/off balance sheet problems...And much more debt to unload...
    Now get the BIG Picture...
    They don't really run a publicly-traded, Stockholder-owned Corporation...They run the same CHK that McClendon started privately...A private equity conglomerate for those who created the debt...
    And the funding is provided by CHK leased and unleased mineral owners all across U.S. who are gouged and underpaid by this conglomerate each and every day from their mineral estates.
    Happy Post Halloween... Trick or Treat???
    IMO...
    1 Nov 2012, 06:02 PM Reply Like
  • Faisal Mohamed
    , contributor
    Comments (26) | Send Message
     
    i believe in carl icahn
    1 Nov 2012, 08:12 PM Reply Like
  • k2caliguy
    , contributor
    Comments (59) | Send Message
     
    natural gas is a long term investment, I'm getting in on this... Canada has said if they can get the keystone built, they will export to china. Natural gas is the next energy boom and the price will rise as we turn natural gas into gasoline. the oil price supports that engineering.
    1 Nov 2012, 11:22 PM Reply Like
  • Brandond
    , contributor
    Comments (376) | Send Message
     
    Excellant quarter. The loss was driven by a non-cash impairment charge so no big deal. As a CPA and former CFO, I can tell you that the accountants are constantly pushing impairment analysis and most CFOs are fine taking the charge and cleaning up the books in times of stock lethargy (makes for cleaner books in future periods).

     

    There are numerous assumptions that go into impairment analysis and it is NOT a black and white exercise. Thus, the fact that a charge occurred does nothing to buoy my outlook. If there is a selloff Friday, I'm adding to position as this stock is poised to benefit from the expansion of nat gas and greater oil drilling.
    2 Nov 2012, 05:33 AM Reply Like
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