Seeking Alpha

The ink was barely dry on Chesapeake's (CHK -2.1%) better-than-expected earnings report before...

The ink was barely dry on Chesapeake's (CHK -2.1%) better-than-expected earnings report before worries resurface about its liquidity position and slow progress on its asset-sale program. In its conference call, CHK said its 2013 funding gap stands at $3.5B, barely halfway through its $7B asset-sale target. Concerns are exacerbated by supposedly receiving low prices for the assets.
From other sites
Comments (2)
  • trisleach
    , contributor
    Comment (1) | Send Message
     
    Another way of putting it is that CHK will have NO funding gap if it comepletes even half of its asset sale target, with the remainder put to paying down debt. Hardly the stuff of "worries resurfacing". Its done $2bn already.
    1 May 2013, 01:29 PM Reply Like
  • Factzplz
    , contributor
    Comments (259) | Send Message
     
    CHK has always executed its plan, and the whole tone of the call, and even direct statements, is that it wants to under promise and over deliver. It was clearly stated it would exceed the minimum of its sales with demand picking up for its properties, AND it will reach all of its debt goals.

     

    With the closed and planned sales + $3.2 billion of (current) liquidity, there will not be any shortfalls. The fact that it is still drilling at the same pace, is 85% hedged for oil at $95, and that costs per well have dropped 30%, shows it is executing on all fronts.

     

    Put a fork in it. This story is done and over. We're six months from an incredible upside.
    1 May 2013, 04:02 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
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