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Chesapeake Energy Corporation (CHK)

  • 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.
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  • 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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  • Aug. 22, 2013, 2:47 PM
    • Wall Street estimates the big E&P companies and integrated oils will spend nearly $160B this year to ramp up production, with little risk of a year-end onshore slowdown as was seen in 2012.
    • Initial indicators also suggest the companies are more willing than expected to invest more capex dollars into U.S. onshore drilling to benefit from efficiency-driven cost improvements.
    • 24/7's Lee Jackson lists some of the companies spending the most money to find oil, led by Apache (APA), Anadarko (APC) and Chesapeake (CHK), each expected to spend at least $5.5B this year.
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  • Aug. 19, 2013, 3:16 PM
    • Chesapeake Energy (CHK -0.8%) loses its initial pop caused by Friday's disclosure of Carl Icahn's increased near-10% stake, prompting Barron's to ask if Icahn has arrived a bit too late to the party after shares have surged nearly 30% YTD.
    • Asset sales are driving CHK's story, but uncertainty remains about future production growth, and thus its cash flow; while CHK raised its 2013 crude production estimate, Macquarie points out management indicated in its Q2 conference call that two-thirds of the guidance revision was driven by timing of asset sales while performance improvements only drove one-third.
  • Aug. 19, 2013, 12:25 PM
    • BofA Merrill Lynch offers its list of top stocks to buy that will benefit from the fracking revolution, led by Chesapeake Energy (CHK); BAML has a $36 price target on CHK, the highest on Wall Street, vs. the consensus target of $24.
    • The picks among oil and gas producers: COG, CLR, EOG, PXD, RRC.
    • Oil services and equipment: BHI, EMES, FET, NOV.
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  • Aug. 16, 2013, 5:33 PM
    • Chesapeake Energy (CHK) +1.8% AH as Carl Icahn raises his stake in the company to 9.98% from 8.98%, according to an SEC filing.
  • Aug. 16, 2013, 11:27 AM
    • Aubrey McClendon is back with a vengeance in Ohio's Utica shale: His new American Energy Partners reportedly put up the high bid for 50K acres offered by Shell (RDS.A, RDS.B), and also is believed to have acquired 22K Utica acres from EnerVest (EOSOF.PK), one of Chesapeake’s (CHK) partners in Ohio.
    • McClendon may be able to reassemble much of his old team; this week, CHK announced the immediate departures of four execs including operating chief Steve Dixon, while longtime general counsel Henry Hood and public affairs chief Tom Price left in May.
  • Aug. 12, 2013, 5:43 PM
    • Heads are rolling at Chesapeake Energy (CHK), as four top executives - the COO, exec VP of production, senior VP of drilling and senior VP of human resources - are leaving the company effective immediately, as part of an ongoing reorganization effort.
    • Shares +0.3% AH.
  • Aug. 9, 2013, 5:29 PM
    • Chesapeake Energy (CHK) has sold stakes in trucking and natural gas companies and is trying to shed real estate in Oklahoma City, it told regulators this week.
    • CEO Doug Lawler declined to provide details during CHK's latest earnings call, but its 10-Q filed this week clearly shows the process is underway; it has written down the value of all properties it has for sale, recording an impairment loss totaling $189M.
    • CHK recently has exited investments in Clean Energy Fuels (CLNE), sold its 10% stake in Gastar (GST), and dumped its interest in a trucking company.
  • Aug. 7, 2013, 4:38 AM
    • Chesapeake Energy (CHK) has withdrawn from a two-year legal battle to extend leases to drill for natural gas on thousands of acres of land in New York State.
    • Chesapeake, which obtained the licenses in 2000 - prior to the shale revolution - wanted to retain the leases on the original terms, arguing that NY's five-year moratorium on fracking allowed it to do so.
    • Landowners argued otherwise and wanted to negotiate new terms. They're now free to do so and possibly at higher rates.
    • Chesapeake's move possibly reflects frustration at NY's stance and/or its strategy to limit spending as it looks to cut debt.
  • Aug. 6, 2013, 6:17 PM
    • Chesapeake Energy (CHK) has sold off its 1.1% stake in Clean Energy Fuels (CLNE), which provides natural gas fuel for transportation, according to CHK's latest 10-Q filing.
    • CHK says the carrying value of its $10M investment in the company backed by T. Boone Pickens had gained $3M before the sale last month, but $100M in CLNE convertible notes were sold for $85M to a buyer who also assumed a commitment to buy the third and final $50M tranche of convertibles.
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  • Aug. 2, 2013, 2:38 PM
    • For Goldman's Brian Singer, the most important takeaway from Chesapeake Energy's (CHK -0.6%) conference call was CEO Doug Lawler's indication that "E&P capital spending [would be] within cash flow starting in 2014." This a break from precedent — CHK has a "history of outspending cash flow."
    • Singer says investors have historically avoided the stock due to capex concerns.
    • "The forcefulness of this disclosure so soon after Mr. Lawler started at CHK is indicative of the importance of capital discipline" to the company, Singer says.
    • Price target hiked to $29 from $26.
    • See also: Investors cheer fiscal discipline at CHK.
  • Aug. 1, 2013, 2:46 PM
    • Chesapeake Energy (CHK +7%) CEO Doug Lawler says in the earnings call that a comprehensive review of the company's partnerships and assets is underway, with the general aim is to "reduce the complexity and provide better clarity on where we are getting our best returns."
    • On CHK's new-found fiscal discipline - reduced capex plans and only $100M spent YTD on undeveloped land - Morningstar's Mark Hanson says "new Chesapeake wouldn't recognize old Chesapeake if they passed each other on the street."
    • Shares hit a new 52-week high of $25.20.
    | 1 Comment
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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.