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Chesapeake Energy Corporation (CHK)

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  • Apr. 23, 2012, 2:11 PM
    You can shear a sheep many times, but you can skin him only once. The actions of Chesapeake's (CHK +3.3%) Aubrey McClendon aren't Enron-esque, but the actions - and CHK's legalese reaction - are remarkable in their tone-deafness, Kid Dynamite writes. CHK needs to understand that shareholders feel they may be getting sheared, and may react by bailing before they get skinned.
    | 20 Comments
  • Apr. 20, 2012, 7:53 AM
    A Chesapeake Energy (CHK) shareholder files a lawsuit against CEO Aubrey McClendon, according to reports on CNBC. Shares of CHK -0.3% premarket, -6.1% post-McClendon story.
    | 15 Comments
  • Apr. 19, 2012, 3:29 PM
    Chesapeake Energy (CHK -0.3%) trades flat a day after disclosure of the CEO's loan practices, and another analyst comes to its defense as BofA sees the news as “immaterial to the investment case” and yesterday's stock drop as “unfounded." Sterne Agee says the focus should be the “impact of prolonged weak gas prices on [CHK's] cash flow generation ability," hardly a ringing endorsement.
    | 2 Comments
  • Apr. 18, 2012, 8:37 PM
    "Mr. McClendon's interests and Chesapeake's (CHK) are completely aligned," says the firm, responding to this morning's story. "The suggestion of any conflicts of interest is unfounded." The Board of Directors: "The BOD is fully aware of the existence of Mr. McClendon's financing transactions and the fact that these occur is disclosed in the proxy." The Q&A makes for a good read for those interested in corporate governance.
    | 31 Comments
  • Apr. 18, 2012, 5:25 PM
    Chesapeake Energy (CHK -5.5%) pared some of its earlier losses as defenders stepped up to say the stock's drop was overdone. Stifel Nicolaus maintains a Buy rating, insisting CHK is not the guarantor of Aubrey McClendon's loans but suggesting the episode reinforces the market's sentiment of poor corporate governance at the company.
    | 2 Comments
  • Apr. 18, 2012, 3:21 PM
    Keep it simple SEC, writes Sober Look. Focus on broad investor protections and disclosures for companies rather than combing through the detail of hedge and PE funds. It seems impossible McClendon's (CHK) loans - highly relevant to investors for a number of reasons - did not have to be disclosed, yet this is the case.
    | 7 Comments
  • Apr. 18, 2012, 11:33 AM
    Shares of Chesapeake Energy (CHK) extend their premarket loss - down 8.8% to a multi-year low - in the wake of a disclosure that CEO Aubrey McClendon took out loans against his stake in the company - a move under fire (I, II) as a conflict of interest. (also)
    | 8 Comments
  • Apr. 18, 2012, 9:03 AM
    Premarket gainers: CHSI +32%. SXCI +9%. IVN +9%. URI +9%. HDY +4%. WYNN +4%. FSLR +3%. PCX +3%. WLT +3%. STX +3%.
    Losers: GNW -11%. CREE -7%. ALU -5%. STD -4%. TEF -4%. SYT -3%. BEE -3%. ASML -3%. CHK -3%. UBS -3%. SNE -3%. LOGI -3%. INTC -3%.
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  • Apr. 18, 2012, 8:24 AM
    Chesapeake Energy (CHK) and McClendon aficionados will surely remember 2008, when the CEO and the company nearly went down after he received margin calls on loans he had taken out to purchase stock in the company. A stake worth $1.9B at one point mostly vanished. (today's borrowing story)
    | 22 Comments
  • Apr. 18, 2012, 8:16 AM
    Chesapeake Energy (CHK) CEO McClendon has borrowed $1.1B (with his shares in the company as collateral) over the last 3 years to invest in thousands of the company's wells. The loans are used to fund a perk which allows him to invest 2.5% in every well drilled by the company. McClendon and the company say the loans pose no conflict of interest nor did they need to be disclosed. Shares -2.2% premarket.
    | 17 Comments
  • Apr. 17, 2012, 5:18 PM
    "It's like investing in gold in 1997," says bond man Jeff Gundlach of his favorite investing idea - natural gas - which DoubleLine is accumulating in one of its funds. On the question of QE3, he says we're already doing it - it's called Operation Twist - and when it's over he expects equities to struggle. Stock valuation in general right now? The PE on major indices should be in the single digits. Q&A here. Blog here.
    | 12 Comments
  • Apr. 16, 2012, 6:05 PM
    Chesapeake Oilfield Services has filed for its expected IPO. The company, a Chesapeake Energy (CHK) spinoff, is looking to raise $862.5M under the symbol COS. Chesapeake Oilfield, notes it currently handles a small fraction of CHK's oilfield service needs, and says it generated 2011 revenue of $1.3B (+60% Y/Y) to go with net income of $19.8M. As of Dec. 31, it had $1.05B in long-term debt.
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  • 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)
    | 2 Comments
  • 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.
    | 4 Comments
  • 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.
    | 14 Comments
  • 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.
    | Comment!
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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.