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Aubrey McClendon forfeited a few perks, but skeptics see Chesapeake's (CHK) turnaround effort as...

Aubrey McClendon forfeited a few perks, but skeptics see Chesapeake's (CHK) turnaround effort as just playing catch-up; shares have lost nearly 5% since corporate governance moves were announced. The changes were merely “incremental,” Argus analyst Philip Weiss says. "The house is not in order yet... If you don’t have a position [on CHK], don’t take one."
Comments (2)
  • why is AM still employed with this company? some people are not qualified to run a "public" company. Shareholder value is being incinerated by forced sales, massive cap ex and extremely low ng and ngl prices.
    10 Jan 2013, 06:49 PM Reply Like
  • One thing NOT going for natural gas is that those power plants that have switched from coal to natural gas now have an added risk of the nature of the interdependency of natural gas and electricity to each other. This opens the door for nuclear, wind, and solar to be playing an important role in being what keeps rolling blackouts from happening when those natural gas fired power plants have interruptions in receiving natural gas (ie during freezes or storms or during pipeline disruptions).

     

    The Texas and New Mexico power outages of Feb. 2011 during the extended freeze was a lesson learned about how not so great/reliable natural gas is for example…some urban natural gas compressors and compressor stations are powered with “electricity” and when the lights go out, so do the compressors.

     

    Texas and New England are about 40% dependant on natural gas at their power plants, so they have more interdependency risk than other states.

     

    If natural gas ever does go back up high enough…I read that some power plants will just switch back to burning coal-whatever is cheaper (this won’t help Chesapeake)…anybody know anything more about that?
    10 Jan 2013, 09:43 PM Reply Like
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