warelf

Chesapeake Energy Appears Very Well Positioned

Dutchmark is right - annoying errors + the article is little better than cheerleading and very light on analysis and detail

McLendon bought shares, was right in the past & is probably right in the future doesn't pass for analysis

For example: Hedging doesn't always add to shareholder value & will be a significant negative for 2008. 3 or 4 years ago this was also true but overall they do end up on the + side. CHK HAS to hedge because they can not risk low NG prices because of high debt and cash committed to capex. Unlike companies like Cimarex which are cleaning up now because they are largely unhedged

It probably will double if NG stays in the $8 to $10 range but remember that it is a commodity & can just as easily fall back. Currently a very large facility is shut down in the Gulf and this is affecting NG prices which are virtually always down in the May shoulder season - this is an anomaly.

This company has HUGE potential with he Fayetteville & Haynesville shale areas but pull costs are not known & likely to rise + they need high NG prices to be economic.

It pays not to fall in love - even with Aubrey :-)