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Chesapeake Energy Corporation (CHK)

  • May 10, 2012, 3:53 PM
    Chesapeake Energy (CHK) is saddled with $1.4B of previously unreported liabilities due over coming years from off-balance sheet deals, WSJ reports. The company has commitments to banks requiring delivery of specific amounts of oil and gas. These so-called VPPs are essentially debts, with payments due in fuel rather than cash. Shares take a tumble, -1.7%.
    | May 10, 2012, 3:53 PM | 54 Comments
  • May 9, 2012, 3:58 PM
    Moody's lowers its outlook on Chesapeake Energy (CHK +3.6%) to negative from stable, reflecting growing risks from CHK's massive capex plan. CHK's cash flows are vulnerable to further declines in natural gas prices, Moody's says, and it remains dependent on completing asset sales to maintain liquidity fund its transition towards higher liquids production.
    | May 9, 2012, 3:58 PM | 4 Comments
  • May 9, 2012, 4:46 AM
    The bad news just keeps rolling in for Chesapeake Energy (CHK), with sources saying that in the weeks before CEO Aubrey McClendon was stripped of his chairmanship, he arranged an additional $450M loan from a longtime backer which was simultaneously arranging a $1.25B round of financing for Chesapeake itself.
    | May 9, 2012, 4:46 AM | 15 Comments
  • May 9, 2012, 3:38 AM
    A shareholder lawsuit accuses embattled Chesapeake Energy (CHK) of understating the cost of personal jet travel provided to top executives and directors by as much as $10M per year. Chesapeake had claimed personal use of company aircraft was "limited," with jets used "primarily" for business travel.
    | May 9, 2012, 3:38 AM | 12 Comments
  • May 8, 2012, 4:24 PM
    Natural gas enjoyed a nice late-day pop Tuesday after the U.S. EIA cut its 2012 production outlook while dramatically increasing its demand forecast. The agency now sees 2012 natural gas production increasing by 2.9bcf per day, or 4.4%, to 69.14bcf per day. That's still a record, but it's also below its April forecast of 69.22bcf.
    | May 8, 2012, 4:24 PM | 3 Comments
  • May 8, 2012, 10:27 AM
    A man of many hats... While building Chesapeake (CHK), Aubrey McClendon also has helped run a hedge fund and two VC firms; battled a township in Michigan over zoning for a real estate development; acquired ownership stakes in an NBA team, a TV station, several restaurants, a cattle ranch and a cancer treatment center; and opened a store on Route 66 that sells 500 varieties of soda. Among concerns addressed in Southeastern Asset's letter to CHK's board was "management's focus." (also)
    | May 8, 2012, 10:27 AM | 10 Comments
  • May 8, 2012, 6:56 AM
    Chesapeake's (CHK) contract with CEO Aubrey McClendon allowed him to play the markets in an extraordinary perk that isn't common in the industry or even within the company. The 2009 contract did limit the exec from taking an active role in any hedge fund after his personal fund shut down, showing that the board was at last partially aware of McClendon's outside activities.
    | May 8, 2012, 6:56 AM | 1 Comment
  • May 7, 2012, 2:38 PM
    Chesapeake's (CHK -0.4%) largest shareholder urges the company to remain open to potential acquisition offers in the wake of Aubrey McClendon's troubles. Southeast Asset Management advises CHK not to use the current price-to-value gap "as an excuse to refuse discussions with any potential acquirers who would be willing to pay a price today that recognizes the longer term value of the company."
    | May 7, 2012, 2:38 PM | 21 Comments
  • May 4, 2012, 12:26 PM
    Fitch Ratings lowers its outlook on Chesapeake Energy (CHK +1.2%) to negative from stable, citing CHK's aggressive capex program in the face of weak natural gas prices; the rating is maintained at BB. The ratings firm estimates CHK's 2012 spending plans will create a ~$10B funding gap that would pressure credit quality.
    | May 4, 2012, 12:26 PM | Comment!
  • May 3, 2012, 4:24 PM
    Chesapeake Energy (CHK) confirms the company and CEO Aubrey McClendon have been notified by the SEC of an informal inquiry and a request to retain certain documents. CHK -0.5% AH.
    | May 3, 2012, 4:24 PM | 1 Comment
  • May 3, 2012, 2:48 PM
    The big moves in Green Mountain (GMCR -48%) and Chesapeake Energy (CHK +1.91%) recently have value investors chomping at the bit to scoop up shares at deep discounts. To do so however, is akin to trying to catch a falling knife. "You have to distinguish between just setbacks and atrophy of business model,” says Short Hill Capital's Stephen Weiss. If you don't, you might just find yourself getting impaled by tempation. Some safer bets might be: Starbucks (SBUX -2%), Visa (V -4.6%), or McDonald's (MCD -0.6%).
    | May 3, 2012, 2:48 PM | 16 Comments
  • May 3, 2012, 12:52 PM
    Chesapeake's (CHK) controversies also weigh on Chesapeake Midstream Partners (CHKM -4.9%). In downgrading CHKM shares, Citi cites the increased risk following the stock volatility of the partnership's general partner and largest customer. The firm doessn't draw conclusions on CHK's ultimate fate, but "it seems prudent to look at the potential impacts on the partnership."
    | May 3, 2012, 12:52 PM | Comment!
  • May 3, 2012, 12:27 PM
    It's not for the faint of heart, but Chesapeake (CHK +2%) is upgraded by BMO and Bernstein with respective target prices of $25 and $21, nodding to the risk while excited at the potential investor reward if the stock price is at a bottom. “The company is being watched,” BMO says, but "what remains is a company with a deep and wide asset base, and one that has fundamental value."
    | May 3, 2012, 12:27 PM | 4 Comments
  • May 3, 2012, 10:28 AM
    One problem with Aubrey McClendon's plan to turn around Chesapeake (CHK +1.7%) via a rebound in natural gas prices by 2014: He may not have two years to wait. An SEC filing reveals top shareholder Southeastern Asset Management may initiate talks with CHK and third parties about taking steps to boost the share price or sell the company outright.
    | May 3, 2012, 10:28 AM | 2 Comments
  • May 2, 2012, 9:02 PM
    Maybe another sign the long slide in natural gas is nearing its end, legendary trader John Arnold is hanging up his spurs after a couple of years of unsatisfactory returns, according to sources. Gas prices dove by a nickel on the news as some believe Arnold's Centaurus Fund will need to unwind positions, while others say his departure just reinforces poor market sentiment.
    | May 2, 2012, 9:02 PM | 5 Comments
  • May 2, 2012, 3:19 PM
    Here's Chesapeake's (CHK -13.5%) conundrum: CHK has been touting its shift from natural gas to liquids as a way to overcome low natural gas prices, but its production of liquids is unimpressive so far. And weak nat gas prices make it more difficult to find the funds needed to drill the wells for producing the liquids. For today at least, this explains more of CHK's price swoon than McClendon's antics.
    | May 2, 2012, 3:19 PM | 7 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.