Seeking Alpha

Morningstar's Mark Hanson likes what he heard on Chesapeake's (CHK) conference call: "They...

Morningstar's Mark Hanson likes what he heard on Chesapeake's (CHK) conference call: "They really seem to be turning the corner on [financial] discipline," as interim CEO Steven Dixon expresses "tremendous confidence" CHK's spending will not exceed the planned $6B drilling budget. On CHK's lack of a target date for finding a new CEO, "being prudent is a good thing."
From other sites
Comments (1)
  • pauliene
    , contributor
    Comments (455) | Send Message
    right now the market is fascinated with the company having, today, completed a 2.3 billion dollar new debt offering.
    then, the company placed a tender offer for almost 1.something billion in debt which was about 65 % placed into redemption with about 15 more days to get more bond holders to tender.
    then they have the April court case that if they win, they save 400 million dollars in future payments, and, if they lose they just use the generated cash to pay off other debt. then the street can't get a handle on their selling calls on future production to lock in profits and known cost.
    the street can"t get a handle on their selling 1.5 billion in assets so far this year with more to be completed as stated in the conference call.
    street cannot understand 83million shares short and big players like Carl in the game is to their advantage.
    the street cannot see that looking at the full year, week by week, that we are facing a short fall this winter with available supplies of natural gas as I see it. look at the numbers, the government says in January we supplies less gas and used up more.
    we went from 900 BTU overload to , by next two weeks to a below 5 year average.
    the street cannot seem to understand that natural gas requires not only product in the ground, but, a company capable to deliver product into the market place. its a lot of infrastructure and pipes involved , not just dig a hole.
    in next few months Chesapeake will have completed the bond offerings, the bond court deal, the earnings report, and probably a few asset deals as promised.
    what hey fascinating is, the higher natural gas goes, the more the street cries for Chesapeake not sharing the prize.
    in fact, the higher gas goes, so will, over time the price of Chesapeake
    once the street realizes they are here to stay and to play, big time, in the oil and natural gas market, the shorts will run.
    1 Apr 2013, 06:06 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs