Chesapeake Energy Corporation (CHK) - NYSE
  • Sep. 18, 2015, 5:40 PM
    • Top gainers, as of 5.25 p.m.: PGLC +7.5%. CATB +4.9%. CANF +3.7%. ERIC +2.0%.
    • Top losers, as of 5.25p.m.: CHK -3.8%. VNR -3.6%. PLAY -2.6%. TVIX -2.0%.
    | Sep. 18, 2015, 5:40 PM | 8 Comments
  • Sep. 17, 2015, 3:59 PM
    • Chesapeake Energy (CHK -4.4%) is a major loser today following chatter that it may not be able to raise desired capital with a sale of its Utica shale assets.
    • Reports say CHK has been hoping for $2B from such a sale but instead has received "low-ball" offers of ~$700M.
    • CHK has not announced it is selling these assets, but it has been rumored that the company is shopping for potential buyers.
    | Sep. 17, 2015, 3:59 PM | 47 Comments
  • Sep. 16, 2015, 7:03 PM
    • J.P. Morgan analysts warn that companies with large amounts of floating-rate debt - including Chesapeake Energy, Freeport McMoRan, Ford and GE - could be at risk if the Fed decides to raise interest rates.
    • Companies with variable/floating-rate debt suffer a more immediate impact by a rate hike than companies with fixed-rate debt, the analysts say; variable-rate coupons typically reset quarterly, meaning that changes in the base rate flow through almost immediately to variable-rate borrowers, while fixed-rate borrowers do not see such an impact until they refinance or issue new debt.
    • JPM lists 25 companies - not including financials - that have the “highest variable-rate debt as a percentage of market cap": FMC, NRG, FCX, AES, CVC, LVLT, PVH, CHK, FE, DVA, THC, OI, CNX, F, HCA, FOSL, RCL, JOY, GE, ADS, ALLE, HBI, GT, DNB, AN
    | Sep. 16, 2015, 7:03 PM | 66 Comments
  • Sep. 8, 2015, 3:49 PM
    • Williams Cos. (WMB +1.4%) renegotiated contracts with Chesapeake Energy (CHK +5.3%) are supposed to be positive for WMB's EBITDA, but Amey Stone at Barron's says several MLP contracts likely will be rewritten in the coming months resulting in tougher terms for the midstream MLPs that provide the storage and transportation.
    • Janney analyst Nathan Judge argues that such negotiations are healthy for the recovery of MLPs, saying the deals often will result in positive outcomes for the MLP and may be supportive for a recovery in the group as fears diminish.
    • The MLP usually has the upper hand in contract renegotiations, Judge believes, as customers that wish to renegotiate must make it economically attractive to the MLP to make changes; also, if the customer expects to grow, it will need to incentivize the MLP to invest, which was clear from the WMB-CHK deal.
    | Sep. 8, 2015, 3:49 PM | 2 Comments
  • Sep. 8, 2015, 12:21 PM
    • Chesapeake Energy (CHK +6.7%) surges higher after announcing a deal with Williams Cos. (WMB +1.4%) that will decrease its natural gas transportation costs in exchange for higher volume.
    • The deal should help improve CHK's 2016 guidance by diminishing the issues of high transportation costs and minimum volume commitments that have weighed on the shares for nearly a year, Wunderlich's Jason Wangler says.
    • The firm says it remains bullish on CHK’s assets and believes management "continues to navigate tough internal and external factors quite impressively."
    | Sep. 8, 2015, 12:21 PM | 13 Comments
  • Sep. 8, 2015, 9:14 AM
    | Sep. 8, 2015, 9:14 AM | 3 Comments
  • Sep. 1, 2015, 5:57 PM
    • Applying newer fracking techniques to the prolific Haynesville Shale natural gas region that straddles Louisiana and Texas could give the U.S. more and cheaper gas supplies for many years, WSJ reports.
    • Experimental wells by explorers including Comstock Resources (NYSE:CRK) and Chesapeake Energy (NYSE:CHK) are proving highly profitable even at today’s depressed prices because of the sheer volume of fossil fuels that can be coaxed out of the ground.
    • The results so far have been confined to a small area in a single Louisiana parish near the Texas border, but if the approach works across the entire Haynesville Shale, which spans 120 miles across both states, the era of low U.S. nat gas prices could continue for decades, experts say.
    • The costs of fracking wells have fallen in the past year, especially in the Haynesville, the second-largest U.S. gas deposit behind the Marcellus.
    • CRK says it could get a 30% return on its new wells even with gas at $2.50/MMBtu, and plans to drill more wells in the Haynesville than it will in the oily Eagle Ford Shale in south Texas.
    • ETFs: UNG, UGAZ, DGAZ, BOIL, GAZ, FCG, GASL, KOLD, UNL, DCNG
    | Sep. 1, 2015, 5:57 PM | 33 Comments
  • Sep. 1, 2015, 10:44 AM
    • Investors should stay away from Chesapeake Energy (CHK -0.7%), Citigroup analysts say, even though the stock has shown signs of life recently, up 30% since Aug. 25.
    • CHK shares are down 60% YTD, the worst performing stock in the S&P 500, Citi says it is not yet time to buy; while CHK has some good assets and capable management, the firm continues to recommend investors stay on the sidelines until it delivers on its commitment to reduce leverage through several ongoing initiatives.
    • Interestingly, in a day of broad declines led by the energy sector, CHK is down only modestly.
    | Sep. 1, 2015, 10:44 AM | 20 Comments
  • Sep. 1, 2015, 9:13 AM
    | Sep. 1, 2015, 9:13 AM | 3 Comments
  • Aug. 25, 2015, 10:43 AM
    • Goldman Sachs analysts say the U.S. stock market correction has many more parallels with 1998 than 2008, which “suggest[s] a rebound ahead,” while predicting the S&P 500 will rise by 11% from current levels to reach 2,100 by year's end.
    • The S&P fell 19% between July and August 1998, but "ultimately, the U.S. economy was relatively unaffected by overseas financial market gyrations in 1998, and we believe a similar situation will occur in 2015," Goldman says.
    • The correlation between U.S. economic growth and Chinese growth is relatively low, Goldman says, estimating that a one percentage point drop in Chinese growth would translate into a 0.06 pp reduction in U.S. GDP.
    • The best strategy for U.S. consumers, the bank advises, is to hold companies with high domestic revenues and avoid companies with high foreign sales.
    • Goldman's list of the 25 most oversold stocks with high U.S. sales exposure: KMX, M, WFM, CHK, SWN, RRC, COG, PXD, OKE, MPC, NAVI, ETFC, LNC, BXP, KEY, RF, DFS, ANTM, CSX, NSC, UNP, JBHT, FSLR, ADS, PAYX
    | Aug. 25, 2015, 10:43 AM | 41 Comments
  • Aug. 13, 2015, 7:27 PM
    • Oil companies are bracing for "lower for longer” prices as a global supply glut persists, dragging U.S. crude to the lowest close since March 2009 at just above $42/bbl.
    • More capitulation notes are out; Oppenheimer's Fadel Gheit wrote today that the "new normal" for oil in a recovery would be $65-$75, and that "the vast majority of oil companies are living beyond their means, with operating cash flow falling short of capital investments and dividend... Unless oil prices rebound significantly above future strip prices, oil stocks could sink further, as takeover premiums shrink with potential sellers significantly outnumbering potential buyers."
    • The world’s biggest producers will need to trim investments by another $26B, Jefferies believes; capital spending will have to fall 10% next year, according to Banco Santander.
    • CNBC's Bob Pisani says when energy stocks staged a brief bounce recently, investors repeated a frequent mistake: They tried to buy oil stocks ahead of a recovery in crude oil, instead of the other way around.
    • The result today was heavy losses for many of the sector's big names: CHK -6.6%, MRO -5.4%, COP -2.8%, APC -2.4%, SWN -4.2%, RRC -4.4%, RIG -6.5%, DVN -3.9%, APA -2.6%, BHI -2.9%, CAM -3.5%.
    • ETFs: XLE, VDE, ERX, OIH, XOP, ERY, DIG, DUG, BGR, XES, IYE, IEO, IEZ, FENY, PXE, PXI, FIF, PXJ, NDP, RYE, FXN, DDG
    | Aug. 13, 2015, 7:27 PM | 173 Comments
  • Aug. 11, 2015, 12:48 PM
    • Chesapeake Energy's (CHK -5.2%) stock price target is lowered by $2 to $14 at RBC Capital to reflect a wider discount to its net asset value in the current weak oil price environment, with the firm saying "more progress on the liquidity overhang is key to reaching NAV potential."
    • RBC sees near-term opportunities for CHK such as outright sales of non-core gassy assets that could generate several hundred million dollars, while larger opportunities to improve the long-term financial structure include sales or JVs of emerging areas such as portions of the STACK and the PRB.
    | Aug. 11, 2015, 12:48 PM | 11 Comments
  • Aug. 8, 2015, 8:25 AM
    • Carl Icahn must still foresee plenty of profits to be made in the right energy investments, with his newly announced 8.18% stake in Cheniere Energy (NYSEMKT:LNG) coming after losing billions so far on his holdings in Chesapeake Energy (NYSE:CHK), CVR Energy (NYSE:CVI) and Transocean (NYSE:RIG).
    • Cheniere soon will begin to throw off considerable cash flow as it prepares to export the first major amounts of U.S. natural gas by sea later this year from its $16B Sabine Pass terminal on Louisiana’s Gulf coast - but should the company start to return cash to shareholders through dividends, or should it continue to invest and grow?
    • Cheniere recently revealed plans to further expand its Corpus Christi terminal and team up with another company on two mid-scale projects in Louisiana, even though it has not secured contracts for the full capacity of projects already announced.
    • Heard On The Street's Liam Denning is among those who suggest Icahn may seek to push Cheniere to scale back its ambitions and focus on churning out cash for distribution from its existing contracts; Denning thinks the deal is not a bet on a gas price rally but that any recovery in oil would "turbocharge" Icahn's investment.
    • "Cheniere has a very aggressive expansion program and is building out more export capacity than any company in North America," Raymond James analyst Pavel Molchanov says, adding that Icahn may say “You guys have built enough, and now it’s time to give to shareholders instead of building more and more and more."
    • While Icahn's plans are unclear, traders bid up the stock anyway after the news, apparently with the expectation that Icahn’s involvement will help push the stock price higher - even though results so far from his energy holdings contradict that notion.
    | Aug. 8, 2015, 8:25 AM | 94 Comments
  • Aug. 5, 2015, 12:24 PM
    • An early sigh of relief evaporates as Chesapeake Energy (CHK -9.5%) shares plunge to new 12-year lows following its Q2 report and after CEO Doug Lawler said in this morning's earnings conference call that he does not expect any significant recovery in prices.
    • The CEO also said CHK is in discussions with potential investors about cash-raising deals that could involve asset sales or drilling partnerships.
    • Lawler said he is not worried about low energy prices deflating offers from potential partners, since any investors considering taking stakes in the company’s fields are focused on how much crude and gas they will yield and at how cheap a per-unit cost.
    • CHK also said in the call that it is curtailing 275M cf/day of gas production in the Utica Shale through October.
    | Aug. 5, 2015, 12:24 PM | 101 Comments
  • Aug. 5, 2015, 8:28 AM
    • Chesapeake Energy (NYSE:CHK+1.9% premarket after meeting Wall Street expectations with an $0.11/share Q2 loss on $3B in revenues that came in 41% less than a year ago but slightly better than estimates.
    • On a GAAP basis, CHK reported a net loss of $4.15B, or $6.27/share, primarily due to a $3.67B drop in the carrying value due to the low prices for oil and natural gas; the drop was roughly the same size as CHK's Q1 drop in carrying value.
    • CHK says its Q2 production averaged 703K boe/day, up 13% Y/Y and up 2% Q/Q, adjusted for asset sales, consisting of 119.5K barrels of oil, 3B cf of natural gas and 79.2K barrels of natural gas liquids, which represent respective Y/Y increases of 11%, 11% and 24%.
    • Natural gas accounts for 72% of CHK's production, and the company's average realized price for natural gas for Q2 was $1.01/Mcf, down from $2.45 a year ago and $2.37 in Q1; the average realized price per barrel of oil was $67.91, down ~$17.50/bbl Y/Y but up more than $5 Q/Q.
    • Operating cash flow at the end of Q2 was $606M, compared to $1.269B in the prior-year quarter.
    • CHK revises its outlook for the rest of 2015, with total production now expected to rise 5%-7% to 667K-677K boe/day, up 4% from the midpoint of prior guidance.
    | Aug. 5, 2015, 8:28 AM | 26 Comments
  • Aug. 5, 2015, 7:04 AM
    • Chesapeake Energy (NYSE:CHK): Q2 EPS of -$0.11 in-line.
    • Revenue of $3.03B (-41.2% Y/Y) beats by $270M.
    | Aug. 5, 2015, 7:04 AM | 21 Comments
Company Description
Chesapeake Energy Corp. is a natural gas and oil exploration and production company, which is engaged in the exploration, development and acquisition of properties for the production of natural gas, oil and natural gas liquids from underground reservoirs. It also provides substantial marketing,... More
Industry: Independent Oil & Gas
Country: United States