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Chesapeake Energy Corporation (CHK)

  • May. 31, 2012, 3:23 PM
    Royal Dutch Shell (RDS.A, RDS.B) is "progressing very well" toward its goal of drilling for oil offshore Alaska by the summer, CEO Peter Voser says. Shell isn't likely to buy assets from Chesapeake's (CHK) Permian Basin oil fields, he says, and warns that Europe's chaos may cause global energy prices to soften in the short term before rebounding in late 2013.
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  • May. 31, 2012, 12:57 PM
    Chesapeake (CHK -0.7%) needs to sell $7B of assets this year to avoid breaching a covenant in one of its debt agreements, Moody’s analyst Peter Speer writes, adding to similar comments from Jefferies. CHK’s cash flow has declined along with the price of natural gas, Speer notes, and it “risks exceeding the 4x debt/EBITDA limitation in its credit facility" in H2 2012."
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  • May. 30, 2012, 3:26 PM
    Chesapeake (CHK -0.2%) says it wants to sell 57,000 net acres of leaseholds and producing wells in the Woodbine Sand play in east Texas, illustrating the cash-strapped company's efforts to cut its massive debt. The Woodbine parcel contains nine operated and producing wells and one non-operated well, CHK says.
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  • May. 30, 2012, 10:59 AM
    Bloomberg discusses Chesapeake (CHK -3%) as a potential takeover target due to its currently depressed valuation. CHK’s equity and net debt are valued at $9.19 for each barrel of oil equivalent, Bloomberg calculates, lowest among U.S. oil and gas explorers with market caps greater than $5B.
  • May. 30, 2012, 8:17 AM
    Chesapeake Energy (CHK) will meet with many of its major lenders later this week, Reuters reports, as the company scrambles to raise cash to close a $9B-$10B funding shortfall. It's unclear whether the meeting is special or regularly scheduled, but the company is expected to talk about its plans and liquidity needs. CHK -1.2% premarket.
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  • 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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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.