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Chesapeake Energy Corporation (CHK)

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  • May. 16, 2012, 4:45 PM
    Shareholders ask a judge to delay Chesapeake Energy's (CHK -4.2%) June 8 annual meeting, arguing investors need more information to make "an informed vote" on proposals concerning Aubrey McClendon's compensation and the re-election of board members.
    | 12 Comments
  • May. 16, 2012, 11:58 AM
    Chesapeake (CHK +0.5%) is raised to Hold from Sell by Deutsche Bank, citing the new $4B loan which increased liquidity to $4.7B. "With this financing, the company has alleviated one of our major risks giving them the runway to sell assets and finance FCF burn. While natural gas pricing risk is still an issue, we have seen pricing firm in the last couple of weeks."
    | 5 Comments
  • May. 15, 2012, 5:25 PM
    As Chesapeake (CHK) confirms its $3B bridge loan has turned into $4B, Sanford Bernstein notes if CHK’s debt pile amounts to more than 4X its trailing four quarters of EBITDA, it would trigger a cascading bond default. Given anticipated producing asset sales decreasing EBITDA, along with lower natural gas prices, "the ratio has the potential to approach, if not exceed" the threshold by Q3 or Q4.
    | 38 Comments
  • May. 15, 2012, 2:59 PM
    Chesapeake’s (CHK -5.6%) 1.5M acres in the Permian Basin may be worth $6.82B, $1.8B more than expected, based on the price Concho Resources agreed to pay this week for oil fields in the same area. Anadarko (APC) CEO Al Walker says he'll take a look at CHK’s Permian assets; Occidental Petroleum (OXY) had a bid for CHK assets rejected, Forbes reported.
    | 4 Comments
  • May. 15, 2012, 10:25 AM
    Chesapeake (CHK -3.9%) reportedly increased the size of the $3B bridge loan it’s seeking to refinance debt to $4B; the debt will now be sold at $0.97 on the dollar, up from $0.96, increasing proceeds for the company and reducing the yield to investors. Earlier today, S&P cut CHK's credit rating to BB- from BB.
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  • May. 15, 2012, 9:27 AM
    S&P downgrades Chesapeake Energy (CHK) to BB- from BB with a negative outlook. "Given revised production expectations, external funding needs are likely to be higher over the next two years than we previously assumed," S&P says. CHK -3% premarket.
    | 1 Comment
  • May. 15, 2012, 8:28 AM
    Chesapeake's (CHK) effort to reassure investors worried about its cash shortage backfired with bond investors yesterday. The price of CHK's most-traded bond, due in 2020, fell 5% to 91.64 cents on the dollar, and the cost of insuring CHK bonds against a potential default jumped 36%. The bond action contrasted with a relief rally in the stock, which rose 4.7% to $15.50.
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  • May. 14, 2012, 11:40 AM
    Carl Icahn will want something big in return for his anticipated stake in Chesapeake (CHK +7.5%), and there's even less standing in his way than in his victory in taking control of CVR Energy, where he replaced seven of the nine members of CVR’s board. CEO McClendon owns just 1.78M shares worth barely $30M, and 13%-owner Southeastern Asset likely would welcome Icahn's involvement.
    | 12 Comments
  • May. 14, 2012, 8:57 AM
    Chesapeake Energy (CHK) +5.3% as its conference call continues; highlight of the call so far as that CHK will delay or cancel its Eagle Ford production deal that would have generated $1B. McClendon says CHK still expects to sell assets in 2013 and be cash flow positive in 2014, with remaining assets worth $50B-$60B; says asset values will be "significantly higher when gas prices improve."
    | 1 Comment
  • May. 14, 2012, 8:37 AM
    Noster Capital Managing Partner Pedro de Noronha calls on Chesapeake (CHK) to fire Aubrey McClendon, saying that other CEOs would have been removed for "far lesser infractions." Noster invested in Chesapeake despite the "red flag" of McClendon being forced to liquidate over 90% of his shares in the firm in 2008 to meet margin calls.
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  • May. 14, 2012, 7:17 AM
    Chesapeake Energy (CHK) shoot up 7.4% premarket off of enthusiasm kicked up by the earlier report that Carl Icahn will disclose a "significant stake" in the company and word of a timely helping hand from Goldman Sachs.
    | 3 Comments
  • May. 14, 2012, 4:08 AM
    Carl Icahn is expected to disclose that he's taken a "significant" stake in Chesapeake Energy (CHK). The company, which says it can't confirm any Icahn actions, has a conference call scheduled with investors for later this morning.
    | 4 Comments
  • May. 11, 2012, 7:20 PM
    And now to the rescue: Chesapeake Energy (CHK) says it's gotten a $3B unsecured loan from Goldman Sachs and Jefferies Group, to be repaid from those 2012 asset sales.
    | 109 Comments
  • May. 11, 2012, 5:15 PM
    The latest sign Chesapeake (CHK) could be in a death spiral: It's damned if it does (sell the assets it needs to sell) and damned if it doesn't (earlier). When natural gas prices were high, CHK was able to aggressively raise money from asset sales to keep drilling in new areas and bring down debt. But with prices near decade-lows, a change in strategy may be necessary, Phil Weiss says.
    | 6 Comments
  • May. 11, 2012, 4:47 PM
    How Chesapeake (CHK -13.8%) managed to crush longs and shorts within a 30-minute span: After filing that “additional time is needed" to complete its Q1 report, it actually filed the Q1 within minutes. A massive short covering spree ensued, the stock gyrated wildly, but reality finally set in: CHK may need to delay asset sales it needs to fund its potential $6B spending gap.
    | 1 Comment
  • May. 11, 2012, 3:57 PM
    Chesapeake Energy (CHK -13.9%) may have to delay some of the $14B in asset sales planned for this year because low natural gas prices may hurt its ability to comply with credit covenants, the company says in an SEC filing today. (more)
    | 20 Comments
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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.