Nov. 6, 2013, 7:04 AM| 4 Comments
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Oct. 24, 2013, 3:34 PM
- Chesapeake Energy (CHK +4%) is on the rise after Citigroup upgrades shares to Buy from Neutral with a $35 price target, up from $27, citing potential growth and cost cutting initiatives.
- Citi believes the new management "will continue to pursue an aggressive restructuring and cost reduction program while realizing significant efficiency improvements throughout its core regions."
- Oil production is poised to accelerate, a point that is underappreciated by the market, the firm adds.
Oct. 22, 2013, 11:57 AM
- North Dakota’s Bakken and south Texas’ Eagle Ford shale formations were responsible for 75% of oil production growth over the past month, and west Texas’ Permian remains the biggest overall oil producer, according to a first-of-its-kind EIA report released Tuesday.
- The Marcellus formation, which straddles Pennsylvania, West Virginia and New York, accounted for 75% of natural gas' production growth, the report said.
- Top Bakken producers in the Bakken include Oasis Petroleum (OAS) and Continental Resources (CLR); in the Eagle Ford, EOG Resources (EOG) and Chesapeake (CHK) are among the top producers, while Diamondback Energy (FANG) is a top asset holder in the Permian.
- Cabot Oil & Gas (COG) is among the largest producers in the Marcellus formation.
Oct. 17, 2013, 6:25 PM
- The Daily Mail passes along a rumor going around earlier that Chesapeake Energy (CHK) could be takeover bait for the likes of BP or Royal Dutch Shell (RDS.A, RDS.B) at ~$40/share.
- Early morning strength in the shares may have been attributed to the rumor, but most gains fell away into the afternoon; shares closed +0.3% but have picked up ~2% AH.
Oct. 15, 2013, 6:42 PM
- Chesapeake Energy (CHK) says it will incur ~$70M in one-time charges in Q3 and Q4 related to its recent layoffs of ~900 employees, according to an SEC filing.
- The charges include ~$45M of compensation expense related to the acceleration of restricted stock awards and another $25M related to other workforce cuts outside of the workforce reduction plan.
Oct. 11, 2013, 10:41 AM
- Chesapeake Energy (CHK -0.9%) is downgraded to Hold from Buy at Stifel Nicolaus on fair valuation, expectations for no production growth heading into 2014, and a view that ongoing efficiency improvements and additional potential non-core asset sales will not add enough meaningful upside potential to shares.
- Stifel thinks investors will begin to shift their investment focus from P/NAV discounts to EBITDA multiples and the growth outlook for CHK; as the shift happens, CHK looks fairly valued on an absolute basis and will underperform relative to its peers, the firm believes.
Oct. 8, 2013, 5:57 PM
- Chesapeake Energy (CHK) lays off 800 employees nationwide, including 640 at its Oklahoma City headquarters, apparently concluding the changes that have led ~1,200 people to leave the company since the first of the year.
- After today's cuts, CHK has about ~11K employees nationwide, including 3,500 in OK City.
- CHK has sold ~$4B in assets this year in addition to trimming jobs.
Sep. 25, 2013, 3:44 PM
- Chesapeake Energy (CHK +0.7%) confirms 86 layoffs, saying it is on track to end its restructuring by Nov. 1.
- The new corporate structure will “break down silos” and increase accountability within the company, CEO Doug Lawler told employees in an email yesterday.
- It's not yet known whether CHK's Ft. Worth, Tex., office, where its Barnett Shale operations are headquartered, will be affected.
Sep. 23, 2013, 4:12 PM| 1 Comment
Sep. 23, 2013, 11:21 AM
- Shell (RDS.A, RDS.B) is pulling out of Kansas after its exploratory wells didn’t show enough potential to stay, another in a series of departures by major exploration companies that have given up on the Kansas side of the Mississippian Lime foundation.
- Shell, which is selling off its 45 producing wells and 600K acres in nine Kansas counties, stopped drilling in July as it reviewed results for its exploratory wells.
- Chesapeake (CHK), Encana (ECA) and Apache (APA) have been gone from the state for more than a year, and Midstates Petroleum (MPO) filed its last intent to drill in April.
Sep. 21, 2013, 8:25 AM
- Both critics and supporters of the new EPA draft regulations on CO2 emissions agree on one thing: This will be the final blow to many proposed coal plants.
- The truth is, U.S. coal generation already was in decline not because of climate regulations, but because of good ol' free-market capitalism; the boom in natural gas production has dramatically increased supplies, sent prices plummeting and prompted a shift away from coal.
- Among potential long-term winners: U.S. nat gas drillers such as CHK and XOM, drilling services firms such as HAL and BHI, pipeline companies such as SE and KMI, makers of gas-fired turbines such as GE and SI, power generators such as NRG and CPN if electricity prices rise.
- Likely losers: Coal appears headed for a decline, and companies with large Appalachian operations such as JRCC and ANR could suffer most as more coal comes from cheaper-to-access deposits in the Illinois Basin and Wyoming; big industrial companies, which have used low U.S. power prices as a competitive advantage, are concerned.
- ETFs: KOL, IDU, PUI, XLU, VPU, RYU, FXU, PSCU, UPW, SDP, UTLT.
Sep. 17, 2013, 4:43 PM
- Chesapeake Energy (CHK) reportedly isn't done with layoffs, CNBC reports, citing an internal email from CEO Doug Lawler to employees sent today.
- A comprehensive review of all areas of CHK's business is underway and is being led by managers and employees from all levels, the note says.
- Sources tell KFOR-TV that as many as 2,000 jobs may be cut; CHK has ~12K total employees.
Sep. 11, 2013, 6:50 PM
- Chesapeake Energy (CHK) agrees to pay $7.5M to settle a class-action lawsuit with Pennsylvania landowners who said it was deducting large fees from their royalty checks.
- The settlement reimburses plaintiffs who had "market enhancement" clauses in their leases, and bars CHK from deducting certain percentages of fees from plaintiffs' royalty checks in the future.
- Reuters reported last month that CHK was taking much heavier deductions from royalty checks it sent to Pennsylvania landowners, in most cases cutting compensation by more than half.
Sep. 10, 2013, 6:26 PM
- Chesapeake Energy (CHK) makes another round of personnel cuts, with several vice presidents told today that their positions had been eliminated; the exact number of cuts is not known.
- In an email seen by The Oklahoman, new CEO Doug Lawler told employees to expect further organizational changes in the coming weeks.
- A CHK statement confirms it is "transitioning key leadership positions and making adjustments to its organization to properly align resources, reduce expenses, and improve its operating and competitive performance."
CHK vs. ETF Alternatives
Chesapeake Energy Corp is a natural gas and oil exploration and production company. It explores, develops and acquires properties for the production of natural gas and crude oil from underground reservoirs and also provides marketing & midstream services.
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