Chesapeake Energy Corporation (CHK) - NYSE
  • Tue, Jul. 19, 11:48 AM
    • Chesapeake Energy (CHK -1.7%) and former partner Tom Ward are being sued by investors who say the pair conspired to rig bids for drilling rights during the shale boom.
    • The lawsuit brought by Chisholm Partners and its investors, which accuses CHK and Ward of working together to artificially lower prices while Aubrey McClendon led CHK and Ward was CEO at SandRidge Energy, seeks at least $30M in damages.
    • The suit alleges that CHK and  SD between them illegally divided up the geographic area covering the Anadarko Basin Region in Kansas, and other states, and agreed not to compete and drive up prices.
    | Tue, Jul. 19, 11:48 AM | 47 Comments
  • Tue, Jul. 12, 12:28 PM
    • Chesapeake Energy (CHK +8.6%) surges after Piper Jaffray upgrades shares to Neutral from Underweight with a $4.50 price target, saying CHK's default risk over the next two years is diminished following $950M of divestitures, a more lenient credit agreement, several debt-to-equity transactions and an improving natural gas narrative.
    • CHK should be able to successfully address upcoming maturities, anticipated outspend and working capital requirements, the firm says.
    • CHK continues to suffer from significant debt, large upcoming maturities and a declining production profile, but Jaffray believes the company's recent actions have improved the outlook for the stock.
    | Tue, Jul. 12, 12:28 PM | 61 Comments
  • Tue, Jun. 28, 9:18 AM
    | Tue, Jun. 28, 9:18 AM | 1 Comment
  • Mon, Jun. 20, 2:25 PM
    • Marathon Oil (MRO +10.4%) powers higher after snapping up P-E-backed PayRock Energy for $888M, increasing its footprint in Oklahoma's prolific STACK oil play.
    • MRO expects internal rates of return for the new addition of 60%-80% before taxes at a WTI price of $50/bbl.
    • CEO Lee Tillman says MRO would ratchet up drilling activity if crude prices held above $50/bbl for a while, and that the Oklahoma oil region is profitable enough that it can compete for capital against the company’s other oil plays.
    • SunTrust analysts consider ~60% of Payrock’s position to be in the core STACK, and estimates the core acreage value at ~$15K/acre, which appears in line with recent transactions.
    • The firm also thinks MRO's move is good news for core STACK players Newfield Exploration (NFX +0.5%), Cimarex Energy (XEC +1.3%), Continental Resources (CLR +1.2%), Devon Energy (DVN +4.6%) and Chesapeake Energy (CHK +3.3%).
    | Mon, Jun. 20, 2:25 PM | 14 Comments
  • Mon, Jun. 20, 9:47 AM
    • Chesapeake Energy (CHK +3.1%) is resumed with an Underperform rating and $3 price target at Jefferies, but the stock pops at the open along with the broader oil and gas sector as Brexit fears wane.
    • The firm says CHK's recent actions have materially reduced the risk of default and liquidity issues, but "overall obligations remain very high, volumes are declining, asset quality looks sub-par and significant further equityholder dilution is likely."
    | Mon, Jun. 20, 9:47 AM | 54 Comments
  • Mon, Jun. 20, 9:16 AM
    | Mon, Jun. 20, 9:16 AM | 1 Comment
  • Thu, Jun. 9, 11:24 AM
    • Chesapeake Energy (CHK -6.7%) is downgraded to Underperform from Sector Perform with a $5 price target at RBC Capital, mostly on concerns about $2.2B in looming debt maturities.
    • The firm also notes that CHK has another $1B in debt coming due in 2019 and again in 2020, so much-needed free cash flow could be scarce over the two-year period.
    • CHK closed a $385M sale of oil and gas assets this month tied to the western Anadarko Basin, but RBC says the company would be better off selling more of its acreage to shore up cash, pointing to the 42K acres recently sold for $470M.
    • RBC also cites valuation in its downgrade, as well as its view that CHK's opportunities to add value in a rising commodity market are more limited than its peers.
    | Thu, Jun. 9, 11:24 AM | 65 Comments
  • Thu, May 26, 9:18 AM
    | Thu, May 26, 9:18 AM | 1 Comment
  • Wed, May 25, 3:18 PM
    • Chesapeake Energy's (CHK +7.5%) recent debt-for-equity swaps that helped reduce its near-term borrowings make sense but come at the expense of dilution to shareholders, Wunderlich analyst Jason Wangler says, arguing that better opportunities lie ahead to purchase CHK shares.
    • CHK's transactions over the past few months reflect a ~10% dilution in exchange for a ~4% reduction in the debt level, and Wangler expects CHK to continue making similar moves, specifically for its near-term maturities, to reduce debt and debt metrics; refinancing the debt would be more expensive, and potentially difficult, so reducing the overall debt is a positive, he says.
    • But the firm maintains its Hold rating and $6 price target on CHK as multiple and/or sizable deals likely are still to come, and "there could be better opportunities ahead once the dilution and debt reductions are completed."
    | Wed, May 25, 3:18 PM | 35 Comments
  • Thu, May 12, 9:19 AM
    | Thu, May 12, 9:19 AM | 13 Comments
  • Thu, May 12, 9:03 AM
    | Thu, May 12, 9:03 AM | 62 Comments
  • Wed, May 11, 2:34 PM
    • Chesapeake Energy (CHK +4.8%) shares are trying to recoup some of their recent losses, but Credit Suisse sees no reason to adjust its Neutral rating with a $4 price target that suggests the stock has further to fall.
    • Credit Suisse says CHK remains on track to meet its target for asset sales of $1.2B-$1.7B in 2016, but the firm worries about the $1.625B debt maturity the company faces next year.
    • The firm notes that CHK had $436M in cash and had reduced drilling capex by $40M at the midpoint to further preserve liquidity but still faces the $1.625B maturity overhang, although the recent STACK sale did not result in a change to its $4B borrowing base, which gives the company liquidity flexibility.
    • Now read Chesapeake Energy shares still worth just $1, analyst says
    | Wed, May 11, 2:34 PM | 56 Comments
  • Thu, May 5, 10:27 AM
    • Chesapeake Energy (CHK +5.8%) surges in early trading after posting a Q1 loss that met Wall Street expectations and striking a $470M sale of some Oklahoma assets to Newfield Exploration.
    • Analysts at Sterne Agee CRT say the two factors "further dent the weakening bear case on CHK... We expect CHK shares to respond favorably to another bullish reset to asset sale proceeds that minimizes the impact to current production, as well as to continued strong operational results."
    • CHK says average Q1 production expenses were $3.36/boe, 31% lower than the year-ago quarter, prompting the company to lower its full-year guidance for production expenses.
    • CHK says Q1 production averaged 672.4K boe/day, above the consensus forecast of 651K boe/day; associated production from the STACK asset sale is only 3.8K boe/day, less than 1% of CHK’s total current production.
    • Of the STACK sale, CHK says the move will "contribute substantially" to reaching the company's target for $500M-$1B in asset sales by year-end, and that more divestitures are expected for Q2 and Q3.
    • Wells Fargo analysts suggest remaining on the sidelines, however, believing CHK still needs a transformative M&A transaction, higher gas prices, and/or some meaningful delevering event.
    • Now read Chesapeake Q1 results: The worst is over
    | Thu, May 5, 10:27 AM | 1 Comment
  • Thu, May 5, 9:12 AM
    | Thu, May 5, 9:12 AM | 2 Comments
  • Thu, May 5, 8:20 AM
    • Chesapeake Energy (NYSE:CHK): Q1 EPS of -$0.10 in-line.
    • Revenue of $1.95B (-39.1% Y/Y) misses by $600M.
    • Shares +6.7% PM.
    • Press Release
    | Thu, May 5, 8:20 AM | 21 Comments
  • Mon, Apr. 18, 9:20 AM
    | Mon, Apr. 18, 9:20 AM | 23 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