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Chesapeake Energy Corporation (CHK)

  • Apr. 16, 2012, 3:47 PM
    Chesapeake Energy (CHK -3.6%) shares hit a 52-week low after Citigroup cuts its rating to Neutral from Buy and its price target to $22 from $28, citing near-term natural gas headwinds. The firm says the risk to filling such large funding gaps "in a downside scenario over the next two years is growing and by far greater for CHK than for any other company in our coverage group." (also)
  • Apr. 16, 2012, 12:17 PM
    Chesapeake Energy (CHK -4.2%) falls on a downgrade to Hold from Morgan Stanley, which is worried about plunging natural gas prices. Though MS recently lowered its 2012 natural gas composite spot forecast to $2.40/MMBtu, the firm still thinks there's more downside than upside risk to its estimate. The same goes for its 2013 forecast of $3.85/MMBtu, given strong domestic production.
  • Apr. 11, 2012, 4:31 PM
    The nominal price of natural gas dipped below $2 to the lowest price in 10 years, but adjusted for inflation, the price has fallen below its 1994 level. It might be the lowest price ever, suggests Mark Perry, but the EIA's price series only goes back to 1994.
  • Apr. 11, 2012, 3:31 PM
    Canadian lenders are doing their part to slow the glut of natural gas by pulling in loans to producers. "Anybody that's at 50% gas-weighted is in some jeopardy here," says an analyst. Compton Petroleum (CMZPF.PK) plummeted 40% this week after its lenders reduced a facility by $30M to $110M.
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  • Apr. 11, 2012, 2:44 PM
    Natural gas futures drop below $2 for the first time since Jan. 2002, as weak demand and robust production have sent prices sliding 33% YTD. While the number of working U.S. gas rigs has fallen 27% Y/Y, gas output remains high because most wells produce a mix of oil and gas regardless of classification; high oil prices thus often effectively subsidize the cost of continued gas production.
  • Apr. 9, 2012, 4:13 PM
    Chesapeake Energy (CHK) announces three oil and gas asset monetization transactions totaling approximately $2.6B in cash. Shares +1.3% AH.
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  • Apr. 9, 2012, 3:10 PM
    Linn Energy (LINE) outperforms its larger competitors in natural gas production with what traders say is among the best hedging programs in the industry. "It's a critical part of our success," says CEO Mark Ellis, adding the company is hedged at attractive prices through 2015. Others hoping a gas bull market isn't imminent: RRC, PXD, VQ.
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  • Apr. 9, 2012, 1:55 PM
    Chesapeake Energy (CHK -3.1%) swings without a safety net after reportedly removing most of its derivative hedges against gas and oil prices for 2012 and 2013. It's a big reversal in philosophy for a company that once bragged of being "the best in the industry” at natural-gas hedging.
  • Apr. 9, 2012, 11:41 AM
    The gold rush heads to Kansas, where prospectors are punching holes in the ground in search of oil and gas in the 5K foot deep Mississippian Lime formation. Leases fetching $30/acre 3 years ago are fetching $3K/acre in the best spots. We think this is a game-changer says a Shell spokesman. Locals - who have seen oil booms come and go - remain a bit more wary.
  • Apr. 5, 2012, 10:37 AM
    It's another stomach-churning dive in natural gas prices as EIA data shows a larger than expected inventory build (42 bcf vs. 34 bcf). May futures -2% to $2.095. UNG -1.4%. A natural gas producer ETF, however, is in the green, FCG +0.4%.
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  • Apr. 4, 2012, 12:49 PM
    "The worst part has got to be over," says Wilbur Ross of natural gas, conceding his purchase of Exco (XCO) was a bit early. "(It) doesn't give cancer... very cheap per Btu... and is less pollutive than oil or coal." Not only will it become a bigger portion of domestic energy supply, but the export possibilities are outstanding.
  • Apr. 3, 2012, 10:05 AM
    A deceleration in the growth of natural gas supply over coming years may be in the cards, posits Robert Sinn, noting the price has now fallen below the all-in production cost for Ultra Petroleum (UPL), one of the industry's lowest-cost operators. Combined with the potential for increased demand, "it's possible to see some light at the end of today's dark tunnel."
  • Mar. 29, 2012, 8:58 AM
    With warm weather about to allow for even higher natural gas inventories, the country's 4T cubic foot storage capacity could get hit by mid-August, literally causing the price to go negative as operators like Kinder Morgan (KMI) turn away product. Low prices are at work increasing gas usage, but it may not come in time to prevent red prices this summer.
  • Mar. 27, 2012, 12:37 PM
    "We're going to be able to say in the next 10 years, to hell with OPEC," Chesapeake's (CHK) Aubrey McClendon says in asserting the rise of natural gas as the most viable alternative to foreign oil. Atlas Energy's (ATLS) Edward Cohen echoes the sentiment: "We've seen a five percentage point increase in the share of electrical generation from gas. Within five years we should be very close to 50%."
  • Mar. 27, 2012, 11:27 AM
    Chesapeake Energy (CHK +0.5%) says it now expects to sell its assets in the Permian Basin in Texas and New Mexico entirely, rather than find a joint venture partner as it had initially said. The sale is needed by the exploration and production company to help close a funding gap this year that could climb as high as $6B.
  • Mar. 21, 2012, 8:36 AM
    "The idea that inflation is gone forever ... (and) these artificially low rates can last, is silly," says Wilbur Ross, calling long-term Treasurys the greatest bubble. Turning to natural gas, where his big investment in XCO is sucking wind, he says he's buying more. "We like very much to invest in companies during time-limited problems."
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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.