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Chesapeake Energy Corporation (CHK)

  • 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.
    | 1 Comment
  • 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.
    | 1 Comment
  • 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.
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  • Sep. 23, 2013, 4:12 PM
    • Chesapeake Energy Corporation (CHK) declares $0.0875/share quarterly dividend, in line with previous.
    • Forward yield 1.33%
    • Payable Oct. 31; for shareholders of record Oct. 15; ex-div Oct. 11.
    | 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.
  • 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.
    | 1 Comment
  • 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."
  • Sep. 9, 2013, 9:28 PM
    • The TD Ameritrade Investor Movement Index increased 5.95% to 5.16 in August as markets stumbled, meaning clients continued their pattern of selling the rips and buying the dips - the index previously fell in July as stocks rallied.
    • There was no contrarian action in Tesla (TSLA), where clients continued to buy as it gained for the month. Dip-buying was notable, however, in a number of basic material companies, including BP, Kinder Morgan (KMP), and Potash (POT).
    • Clients were net sellers in financial names like Bank of America (BAC) and Goldman Sachs (GS), and they faded rallies in Apple (AAPL) and Facebook (FB). Other popular names sold included Chesapeake Energy (CHK), Merck (MRK), and Qualcomm (QCOM).
  • Sep. 9, 2013, 2:51 PM
    • Chesapeake Energy (CHK +1.2%) agrees to release more than 13K acres of land leased for oil and gas drilling in New York state, ending a two-year legal battle with more than 200 landowners; reports of CHK's decision filtered out last week.
    • Some landowners, who signed their leases before the U.S. drilling boom boosted land prices in gas-rich areas, want a release from the leases to seek better deals; others are opposed to any drilling on their land altogether.
    • The 13K acres is a small part of the 2.5M acres CHK holds in natural gas shale plays across the U.S., but it's a meaningful sum for New York, where CHK is one of the biggest leaseholders.
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  • Sep. 4, 2013, 5:53 PM
    • Chesapeake Energy (CHK) will finalize an agreement next week to drop ~12K acres of land leased for energy drilling in New York state, Reuters reports, ending a two-year legal battle with landowners who wanted to cancel expired leases or renegotiate for better terms.
    • CHK's decision to drop the leases is a sign of the growing frustration of energy firms over operating in New York, where a moratorium on fracking is in its sixth year, and an indication that CHK is pulling back on spending after years of aggressive acreage buying.
    | 1 Comment
  • Aug. 28, 2013, 12:56 PM
    • As the natural gas industry struggles with depressed prices, Chesapeake Energy (CHK) is shifting a much larger share of transportation and marketing costs to the owners of land it leases in Pennsylvania, according to a Reuters analysis.
    • The largest natural gas operator in Pennsylvania's Marcellus shale formation, CHK this year is taking much heavier deductions from royalty checks it sends landowners, in many cases cutting compensation by more than half.
    • Such deductions are made in other states, but an ambiguous Pennsylvania law has allowed CHK and others to push the practice further there, analysts and locals say.
  • Aug. 22, 2013, 3:14 PM
    • Oil production in Texas’ Eagle Ford rose 60% Y/Y in June, as the nine fields that make up the majority of the shale formation yielded 617,884 bbl/day of crude, according to preliminary data.
    • Growing production from Eagle Ford is helping fuel a renaissance in Texas crude; the state produced a total of 2.53M bbl/day in May, the highest monthly level since April 1982.
    • EOG Resources (EOG) is the largest Eagle Ford leaseholder, with 639K net acres; Chesapeake Energy (CHK) is next with 485K.
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Company Description
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.