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Chesapeake Energy Corporation (CHK)

  • May. 29, 2012, 4:57 PM
    Chesapeake (CHK) must raise at least $7B through asset sales this year and another $2B next year to comply with credit line covenants, Jefferies calculates, and to get there it may be forced to part with some of its prized assets in undeveloped oil shale fields in Ohio and south Texas. The current market environment makes CHK's plan to spin off its oilfield services subsidiary "unlikely."
  • May. 29, 2012, 12:22 PM
    Adding to Carl Icahn's call for a board shakeup at Chesapeake (CHK), NY State Comptroller Thomas DiNapoli sends a letter to shareholders urging them to withdraw support for two board members. DiNapoli says CHK's falling share price and financial condition would warrant throwing out all members, but with only two up for election, the vote should be viewed as a proxy for the entire board.
  • May. 29, 2012, 9:38 AM
    Chesapeake Energy (CHK +4.2%) pops higher at the open after Friday's news of Carl Icahn's 7.6% stake and his call for replacing at least four current board members. Oppenheimer believes rejecting Icahn's demands would prove CHK's board has not upheld its fiduciary responsibilities and would further discredit the board and CHK management.
  • May. 25, 2012, 5:55 PM
    Now that he owns 7.6% of Chesapeake (CHK), what can Carl Icahn accomplish? Having Icahn around can at least stiffen the spines of the other shareholders, and he's seeking the removal of four board members. But his best results typically come when the company he targets ends up selling itself - and CHK, with its complicated capital structure, wouldn't be an easy sell.
  • May. 25, 2012, 4:04 PM
    Carl Icahn discloses a 7.56% stake in Chesapeake Energy (CHK +1.5%) via 13D filings. Icahn: "If you continue to arbitrarily refuse the request we have made for shareholder representation, we, as activists, will immediately take whatever 'actions' we feel are necessary to protect the value of this company."
  • May. 25, 2012, 10:24 AM
    Chesapeake (CHK +1.8%) shares open higher on news of Carl Icahn's bet on the company, but Antoine Gara reminds that the Icahn rumors aren't a reason for investors to start buying. With or without Icahn, asset sales are the make or break issue as CHK tries to bridge a big funding gap. Also worth noting: The last time Icahn held a big CHK stake, he was in and out with barely a ripple.
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  • May. 24, 2012, 4:48 PM
    Chesapeake Energy (CHK) extends its late-session rally, +2.3% AH, as CNBC reports BlackRock has boosted its stake in the company to 4M-5M shares; as of March 31, BLK owned ~883K shares. Earlier, Bloomberg reported Carl Icahn had taken at least a 4% stake in CHK.
  • May. 24, 2012, 3:58 PM
    Chesapeake (CHK +2.6%) shares rally into the close on a Bloomberg report that Carl Icahn has purchased at least a 4% stake in the company. Note that the latest quarterly disclosure of Icahn's holdings showed no CHK shares; he had reported a 5.8% stake in Dec. 2010.
  • May. 24, 2012, 2:05 PM
    Chesapeake Energy (CHK -1.2%) has put 504K acres in the DJ Basin in Wyoming and Colorado up for sale, as it seeks to raise cash to close a $9B-$10B funding shortfall. The DJ Basin deal includes oil and gas production from 29 wells CHK operates and an interest in 24 non-operated wells.
  • May. 23, 2012, 4:29 PM
    There's little new in Chesapeake's (CHK) latest letter to shareholders, rehashing "numerous" actions its board has taken to enhance corporate governance - cutting directors' and CEO compensation, et. al. The letter is said to address issues raised by NYC Comptroller John Liu, who is calling for the rejection of two board members in upcoming elections.
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  • May. 22, 2012, 2:46 PM
    Chesapeake (CHK +0.2%) stands by its plan to expand its oil production, saying it will spend 90% of its planned $7B capital budget for 2013 on drilling in oil fields, including ~40% earmarked for the liquids-rich Eagle Ford shale formation. CHK still plans on spending 7% of capex on dry gas production despite depressed gas prices.
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  • May. 22, 2012, 10:22 AM
    The selloff in Chesapeake Energy (CHK +0.2%) creates a buying opportunity, Oppenheimer says while maintaining its Outperform rating and $28 price target. CHK is accelerating its liquids production growth and asset monetization, and the firm thinks its net asset value after pending asset sales is above its current share price.
  • May. 21, 2012, 6:00 AM
    A Bloomberg review of Chesapeake's (CHK) filings paints a picture of cronyism and nepotism that calls into question the objectivity of its board. Since 2009, Chesapeake has paid $343M to a drilling equipment manufacturer headed by CHK lead director Pete Miller. The company has also employed another director’s relatives and donated millions to a university overseen by a third.
  • May. 18, 2012, 6:35 PM
    Fitch has downgraded Chesapeake Energy's (CHK) debt rating to BB- from B. Its outlook is negative. S&P downgraded Chesapeake, which has been plagued by liquidity fears in recent weeks, on Tuesday. (also)
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  • May. 18, 2012, 5:54 PM
    The time may be right for long-term investors to find winning bargains in natural gas, Intrepid Capital's Mark Travis says, listing Bill Barrett (BBG) and Patterson-UTI Energy (PTEN) as examples of stocks with solid balance sheets to go along with attractive valuations. But there's too much debt at Chesapeake (CHK): "Shareholders need to be aware that the bankers eat first."
  • May. 18, 2012, 4:17 PM
    Chesapeake Energy (CHK) says it is reducing compensation for outside directors by ~20% and eliminating the use of fractionally owned aircraft for personal travel by outside directors. CHK says the move reduces director compensation to a level at or below the average director compensation of the company's peers.
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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.