Chesapeake Granite Wash - Seriously, This Junk Is Worth $11 Per Share?
- Chesapeake Granite Wash Trust announced a quarterly distribution on August 7th of $0.5796 for common unit holders based on distributable income of $20.3M, both well below year ago values.
- Production for the quarter was flat relative to the previous quarter at 674 MBOE, but far below the year earlier level of 881 MBOE.
- Trust drilling is 80% complete and expected to be finished in the 2nd quarter of 2015.
- The current traded price of the Trust is 1.74 times the latest PV-10 and reflects an implied rate of return of only 1.25%.
- This report provides details on why CHKR is considered severely overvalued.