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Chesapeake Energy Corporation (CHK)

  • Aug. 7, 2014, 12:48 PM
    • Chesapeake Energy (CHK -1.1%) is upgraded to Buy from Hold with a $34 price target at Stifel, which says Q2 earnings confirm its view that CHK is becoming well positioned from a capex efficiency perspective heading into 2015.
    • The firm thinks the stock's current attractive valuation, combined with CHK's increasingly cleaned-up and simplified balance sheet and the recent correction in gas prices and equities, provide a fine entry point heading into what it sees as a positive production growth and capex efficiency trajectory in H2 and above consensus expectations for 2015 production growth.
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  • Aug. 6, 2014, 8:26 AM
    • Chesapeake Energy (NYSE:CHK) -3.3% premarket after missing Q2 earnings estimates, hurt by a loss on the repurchase of debt securities related to a refinancing and lower prices for natural gas liquids.
    • However, CHK raises its midpoint of 2014 production outlook by 10K boe, or 1.5%, to 685K-705K boe/day, attributable to better production trends in H1 and an expected increase in well connections during H2.
    • Q2 oil and natural gas production, adjusted for asset sales, totaled 694,650 boe/day, up 13% Y/Y, consisting of ~113K bbl/day of oil, 84.3K bbl/day of NGL and 3B cf/day of natural gas.
    • Q2 production of natural gas liquids rose 72% but the average price CHK received in the quarter fell 13% to $21.03/bbl.
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  • Aug. 6, 2014, 7:04 AM
    • Chesapeake Energy (NYSE:CHK): Q2 EPS of $0.36 misses by $0.08.
    • Revenue of $5.15B (+10.0% Y/Y) beats by $480M.
    • Press Release
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  • Aug. 5, 2014, 7:17 PM
    • Natural gas production in the Marcellus region exceeded 15B cf/day in July, the most productive period ever recorded there, according to a new report from the U.S. Energy Information Administration.
    • Marcellus, located mostly in West Virginia and Pennsylvania, now accounts for nearly 40% of total U.S. shale gas production, and its rapid growth isn’t expected to ebb soon, the report says.
    • New wells in the region are expected to deliver another 600M cf/day, more than offsetting decline rates, for a net production increase of 247M cf/day.
    • Major Marcellus shale producers include CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN.
  • Aug. 5, 2014, 5:30 PM
  • Jul. 29, 2014, 9:11 AM
    • Chesapeake Energy (NYSE:CHK) says it plans to spend $1.26B to buy back all outstanding preferred shares issued by its CHK Utica unit to simplify its balance sheet and eliminate ~$75M in annual dividend payments.
    • CHK also says it will pay $450M as part of an agreement to exchange some acreage in Wyoming's Powder River Basin with private oil and gas producer RKI Exploration to consolidate its holdings in the southern portion of the basin.
    • CHK -0.7% premarket.
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  • Jul. 14, 2014, 8:10 AM
    • Exterran Partners (NASDAQ:EXLP) agrees to acquire natural gas compression assets from Chesapeake Energy (NYSE:CHK) subsidiary MidCon Compression for ~$135M.
    • The assets include 162 compression units, most of which are being used to provide compression services to BHP Billiton in Arkansas' Fayetteville Shale; as part of the deal, the contract operations services agreement with BHP will be assigned to EXLP.
    • EXLP says the deal will add immediately to distributable cash flow per unit.
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  • Jul. 10, 2014, 3:21 PM
    • A judge in Michigan has ruled that Chesapeake Energy (CHK -1%) must face a criminal trial on a charge of bid-rigging with Encana at a 2010 state land lease auction, citing evidence of a conspiracy between the companies that drove state lease prices down sharply.
    • The court cited evidence including an email sent by a top ECA exec to a land man bidding on ECA’s behalf on the morning of a 2010 auction which refers to a lease area on offer, stating that “this is a Chesapeake area and we will not be bidding.”
    • The ruling said evidence did not support a trial on two other charges involving private landowners, since although the companies discussed a deal to avoid competing for private land leases, they did not consummate one.
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  • Jul. 7, 2014, 3:59 PM
    • Chesapeake Energy (CHK -4.7%) suffers sharp losses as natural gas prices tumble to their lowest in nearly six months after weather forecasts over the weekend showed lower than expected temperatures ahead.
    • Cooling patterns expected to hit the U.S. midwest and northeast over the next 6-10 days have investors betting utilities won't need to burn as much natural gas in the weeks ahead, as summer demand for electricity to run air conditioners eases.
    • The absence of extreme heat has helped chip away at a record natural gas shortage following last year's unusually severe winter; last week, the EIA reported an eighth consecutive week of producers adding more than 100B cu. ft. of natural gas to storage.
  • Jul. 7, 2014, 8:14 AM
    • Rice Energy (RICE) agrees to acquire ~22K net acres and 12 developed Marcellus wells in Pennsylvania from Chesapeake Energy (CHK) for ~$336M.
    • RICE says the acquisition represents a 24% increase in its net acreage position and a 47% increase to its Marcellus inventory of 325 net risked locations as of March 31; current net production total ~20M cf/day from seven wells plus five wells in various stages of development.
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  • Jul. 3, 2014, 3:20 PM
    • A recent surge of low-magnitude earthquakes in Oklahoma probably is the result of the underground disposal of vast quantities of wastewater generated by oil and gas extraction, according to a new study published today in the journal Science.
    • The researchers also calculated that four of the highest-volume wells in Oklahoma are capable of triggering ~20% of recent central U.S. quakes, and found that such induced quakes could potentially occur more than 30 km from the well.
    • The Cornell geophysics professor who led the study says the results suggest regulators and oil companies should avoid disposing of wastewater near major faults and do a better job monitoring the activity.
    • Among energy firms with a significant Oklahoma presence: CHK, CLR, APA, DVN, SD, EOG, MRO, OKE, OKS, GPOR, WPX, WMB, WPZ, LPI, CWEI, NFX, NGL, COG, WLL, NBL, MPO, PQ, XEC.
  • Jul. 1, 2014, 10:27 AM
    • Chesapeake Energy (CHK -6.6%) spinoff Seventy Seven Energy (SSE) advances nearly 4% in its first day of trading as a stand-alone company.
    • SSE, whose board includes a former CIA executive director and Sunoco’s former refining chief, operates drilling rigs, fracking equipment and wastewater trucks from the Rocky Mountains to Appalachia.
    • CHK shareholders received one share of SSE for every 14 CHK shares they owned.
  • Jun. 30, 2014, 12:42 PM
    • New York’s cities and towns can block fracking within their borders, the state’s highest court rules, upholding the dismissal of lawsuits challenging bans in two small upstate towns.
    • The ruling could lead the oil and gas industry to abandon fracking in New York, or it could mean that a patchwork of rules eventually may govern whether exploration can take place across the state; the case also may invigorate local challenges to the practice in states across the U.S.
    • Parts of New York sit above the Marcellus Shale, some of whose top producers are: CHK, RRC, RDS.A, RDS.B, TLM, APC, ATLS, COG, CVX, CNX, EQT, EOG, XOM, WPX, XCO, CRZO, SWN.
  • Jun. 25, 2014, 3:43 PM
    • Michigan's AG files another 12 charges in its land-leasing case against Chesapeake Energy (CHK +2.1%), bringing the total number of counts filed against CHK to 20 counts of false pretenses and conducting a criminal enterprise.
    • According to the complaint, land options in northern Michigan were obtained to keep competing companies from leasing, and the leases later were canceled when competition for land ended.
    • Encana last month agreed to pay $5M to settle civil litigation over its leasing activities and to not contest a charge it tried to collude with CHK, which has denied all charges.
  • Jun. 16, 2014, 4:28 PM
    • Chesapeake Energy Corporation (CHK) declares $0.0875/share quarterly dividend, in line with previous.
    • Forward yield 1.15%
    • Payable July 31; for shareholders of record July 16; ex-div July 14.
  • Jun. 9, 2014, 12:58 PM
    • Mac is back, as former Chesapeake Energy (CHK) CEO Aubrey McClendon's American Energy Partners announces $4.2B in acquisitions across shale formations in Texas, West Virginia and Ohio.
    • The biggest deal is a ~$2.5B acquisition of ~63K net acres of oil and gas properties in Texas' southern Permian Basin from Enduring Resources.
    • In two other acquisitions totaling $1.75B, he’s acquiring 27K net acres (with 40M cf/day of natural gas production) in the Utica shale region of Ohio, and he’s taking 48K acres (with 135M cf/day of nat gas production) in the Marcellus shale of West Virginia, both from Shell's (RDS.A, RDS.B) East Resources division and an unnamed private company.
    • “He’s making bets on the same type of assets he did at Chesapeake," Oppenheimer's Fadel Gheit says. "The guy is consistent.”
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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.