McClendon Helps Chesapeake Energy Fall From Grace [View article]
OK, I getting tired of people commenting on CHK that really don't have a clue about the O&G business, derivatives, trading & hedging NG, CL & NGls. Believe me CHK & Aubrey will survive. Stay in this stock. They have numerous assets and NG prices are rising and will be much stronger in 2013.
The main future driver of NG demand over the next decade will be power demand. Yes, economy & industrial demand certainly will be important to stabilize prices but projected power growth coupled with coal plant retirements will be a very important ingredient to the future demand picture.
Legendary Investor Jeremy Grantham Believes Natural Gas Prices Will Triple [View article]
All true but triple when? Yes, rig count very low but has been. Storage deficit now over 800 Bcf y-o-y and possibly another withdraw last week and this week, which will be unprecedented. Does he take into account the amount of production waiting To come online in the Marcellus, Utica, Cana Woodford, Eagleford & the Miss. Lime? Much of this horizontal drilling, multi-stage frac and associated NG. So, yes prices could increase and have due to late winter demand but will it last? I say HHub stays between $4 and $5.50 p/mmbtu max over the next 3 to 4 years.
Energy investor Darren Schuringa has been quietly racking up stellar returns by investing in MLPs with growing payouts. On Linn Energy (LINE), questions around some accounting practices are "not material to the underlying business or the quality of their assets," and fundamentals "will overshadow the short-term noise about their hedging programs." Other favorites: ATLS, CVRR, SEMG, ACMP. [View news story]
Short term noise about their hedging program? The noise is smart and they know how to manage price risk. Buy.
Top shareholder Southeastern Asset Management wields its influence at Chesapeake (CHK), placing Thomas Ryan, CEO of Service Corp. International (SCI), on the energy company's board. Director Louis Simpson is resigning after serving since 2011. Ryan will stand for election at the June 14 board meeting. [View news story]
So true. The old Aubrey board certainly did not manage him properly but knew more about the business. Vitally important that board members understand O&G economics, fundsmentals, midstream, risk management, etc. I don't think this new board does. I am certainly concerned about that as a shareholder.
SandRidge Energy (SD) protests but approves candidates for a new group of directors proposed by TPG-Axon, following last week's court order barring it from resisting nominations forwarded by the hedge fund trying to reshape the company. Shareholders are set to vote Friday on whether to go with TPG's candidates and oust CEO Tom Ward or stick with the current board. [View news story]
TPG proposed BOD has little clue about O&G, midstream, etc. Concerns me a great deal. Ward needs to step down as McClendon did at CHK but keep people on BOD that truly know the business.
Don't Look To Chesapeake Energy For Your Predictions On Natural Gas Prices [View article]
Yes, we do have a very low NG rig count presently but the fact remains we have now a record amount NG in storage 3.908 Tcf with 2-3 more injections to go. I’m not sure when you think prices will “gradually creep up to the $4 to $6 range” but I for one, do not see this happening in 2013 or 2014 for any sustained period of time. Sure we could see spikes if sustained period(s) of BN temps this winter in the key consuming regions & in the producing regions (causing production freeze offs) but associated NG is meeting the demand for now and drilling continues at a rapid pace in the Mississippi Lime, Marcellus, Bakken and Eagle Ford shale plays. Keep in mind too that what is driving the drilling frenzy now are the processing frac spreads along with the price of WTI. As NG goes up, this shrinks. Here are tonight’s closing HHub strips. Cal 2013 $3.772 Cal 2014 $4.110 Cal 2015 $4.290 Avg 13-15 $4.058
Perfect Time For An Options Play On Chesapeake Energy [View article]
As you keep bad mouthing this company and CEO I keep buying the dips. You obviously don't know the value Aubrey has brought to this company past, present and future. If he were to step down this stock would plummet, guaranteed!
The Problems Plaguing Chesapeake Energy [View article]
You're right on target. I am in the business and our surplus of NG is unprecedented. The y-o-y and y-over 5 yr surplus fell this past week but rare this EIA surplus could reach +900 to +1 Tcf in the next 3-4 weeks. I see HHub prices staying in the 2.25 to 2.80 range prompt for the next 6-12 months. A hot summer will help but just won't be enough. So, I don't advise you to cover. NG gas fundamentals are NOT improving,The NGA will never be revived again.
SandRidge Energy (SD -1.7%) is downgraded to Underweight with a $5 price target (down from $9.50) at J.P. Morgan, citing too much risk relative to any potential upside. The firm says if TPG-Axon wins its consent solicitation, the stock probably moves up, but the stock likely gets hit hard if it loses. Regardless, SD seems to need extraordinary measures to avoid a financial crunch. [View news story]
SD doesn't need board members who do not understand the O&G business ans energy big picture. Way too many E&P companies have these type of boards member who don't have a clue.
Chesapeake (CHK) will no longer be run by Aubrey McClendon, but the company he founded is far from rid of him. He is entitled to ~$47M in total compensation, but the most enduring entanglement is his interests in up to 2.5% of ~45K producing wells, which could make it harder to structure a takeover deal. "It's hard for me to imagine anyone wanting to take it all on," Argus' Phil Weiss says. [View news story]
People, it's not an ORRI but a WI, so that means he pays for his 2.5% WI or should. Please remember, he co-founded the company and took the initial start-up risk. Yes, he made mistakes but he has been GREAT to OKC, the state of Okla. & many other states in his philanthropic efforts. So, before you rip him, please research what he has done. You might be surprised.
It will take MUCH more than the current cold in NE & Mid-West to move NG above $4. Just too much surplus over the 5-yr. avg., NWS forecast bearish and associate NG keeping pace with demand. Certainly helps but need to end the Winter around 1.8 Tcf in the ground and just don't think it will happen.
Why Natural Gas Could Be 50% Higher In The Next Few Years [View article]
Just look at the contango in the forward curve. Easy to be bullish NG. Keep a close eye on 1) storage 2) production, in particular associate NG, 3) NG rig count and 4) demand (power & industrial).
McClendon Helps Chesapeake Energy Fall From Grace [View article]
Why You Should Cover Natural Gas [View article]
Legendary Investor Jeremy Grantham Believes Natural Gas Prices Will Triple [View article]
Chesapeake: A $14 Bet For Risk Seekers Only [View article]
Energy investor Darren Schuringa has been quietly racking up stellar returns by investing in MLPs with growing payouts. On Linn Energy (LINE), questions around some accounting practices are "not material to the underlying business or the quality of their assets," and fundamentals "will overshadow the short-term noise about their hedging programs." Other favorites: ATLS, CVRR, SEMG, ACMP. [View news story]
Top shareholder Southeastern Asset Management wields its influence at Chesapeake (CHK), placing Thomas Ryan, CEO of Service Corp. International (SCI), on the energy company's board. Director Louis Simpson is resigning after serving since 2011. Ryan will stand for election at the June 14 board meeting. [View news story]
SandRidge Energy (SD) protests but approves candidates for a new group of directors proposed by TPG-Axon, following last week's court order barring it from resisting nominations forwarded by the hedge fund trying to reshape the company. Shareholders are set to vote Friday on whether to go with TPG's candidates and oust CEO Tom Ward or stick with the current board. [View news story]
Don't Look To Chesapeake Energy For Your Predictions On Natural Gas Prices [View article]
Cal 2013 $3.772
Cal 2014 $4.110
Cal 2015 $4.290
Avg 13-15 $4.058
2 Big Reasons To Be Bullish On Chesapeake Today [View article]
Perfect Time For An Options Play On Chesapeake Energy [View article]
The Problems Plaguing Chesapeake Energy [View article]
SandRidge Energy (SD -1.7%) is downgraded to Underweight with a $5 price target (down from $9.50) at J.P. Morgan, citing too much risk relative to any potential upside. The firm says if TPG-Axon wins its consent solicitation, the stock probably moves up, but the stock likely gets hit hard if it loses. Regardless, SD seems to need extraordinary measures to avoid a financial crunch. [View news story]
Chesapeake (CHK) will no longer be run by Aubrey McClendon, but the company he founded is far from rid of him. He is entitled to ~$47M in total compensation, but the most enduring entanglement is his interests in up to 2.5% of ~45K producing wells, which could make it harder to structure a takeover deal. "It's hard for me to imagine anyone wanting to take it all on," Argus' Phil Weiss says. [View news story]
Shares of natural gas producers Chesapeake (CHK +5.3%) and Southwestern Energy (SWN +2.9%) rally as a dangerous cold snap hits the eastern and midwestern U.S., boosting demand and prices for the fuel. The east coast is seeing "some of the coldest weather in two years," Kilduff Report analysts say. The cold is expected to continue, according to extended forecasts. [View news story]
Why Natural Gas Could Be 50% Higher In The Next Few Years [View article]