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Chesapeake Energy Corporation (CHK)

  • Jun. 4, 2012, 8:48 AM
    Chesapeake (CHK) announces an agreement with its two largest shareholders, Southeastern Asset Management and Carl Icahn, to reconstitute its Board of Directors by replacing four directors with three new directors selected by Southeastern and one by Icahn. Aubrey McClendon remains CEO. CHK +2.7% premarket.
  • Jun. 4, 2012, 5:34 AM
    Chesapeake's (CHK) decision last October to sell its hedges against low gas prices has exacerbated the company's cash crunch, left it largely unprotected against low gas prices this year and WSJ calculates losses of around $750M-900M on the positions. Chesapeake has generally been successful with these kinds of levered bets, but acting more like a hedge fund than an exploration company can clearly backfire.
  • Jun. 1, 2012, 2:26 PM
    Chesapeake's (CHK -6.7%) new discovery in the Anadarko Basin isn't helping shares, as the price of crude sinks. CEO Aubrey McClendon says the discovery underscores a focus on getting growth from existing assets “rather than on pursuing new leasehold." CHK plans to drill ~65 wells in Anadarko; the drilling is already factored into its capital spending plans.
  • Jun. 1, 2012, 9:34 AM
    Chesapeake (CHK -3.5%) announces a "significant" new discovery in the Hogshooter play in the Anadarko Basin of the Texas Panhandle and western Oklahoma. Chesapeake owns ~30K net acres in the play, which are more than 90% held by production from its legacy deeper Granite Wash production.
  • May 31, 2012, 3:39 PM
    Working capital deficits aren't necessarily alarming if a company is growing rapidly and can access the necessary financing, but Chesapeake's (CHK) deficit sets it apart and bears watching given its turmoil. CHK has enjoyed positive net working capital on a rolling basis in six out of 38 quarters; its peer group has, on average, had positive net working capital for 25 quarters.
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  • 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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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.