mcadoo3312

Chesapeake Energy Continues to Shore Up Its Balance Sheet

Do you have proof of this? What does their receivables schedule look like as there is not much of a difference between A/R and A/P.


On Dec 02 10:16 PM SlipperyWing wrote:

> Debt is one thing, being mortgaged to the hilt is another.
>
> There are contractors (contract tool pushers, welders, excavators,
> etc) and service companies (SLB, HAL) in Oklahoma who have not been
> paid by Chesapeake in over 12 months. There are also working interest
> holders that have common interests with CHK that have not been paid
> for production in over 12 months (a 6 month lag is more typical).
>
>
> Chesapeake is essentially holding their money interest free, and
> have no desire to pay out.
>
> I suspect that you'll hear more about this trend after January 1st,
> when it makes sense for third parties to start demanding their money
> (why demand money in December and pay taxes on it for all of 2008).
>
>
> Chesapeake is in deep trouble, and their cash on hand won't even
> service their debt, much less pay off common interest holders.

Chesapeake Energy Called the Market's Bluff

Compare a chart of Nat Gas for the last five years and the stocks of CHK and EOG. The positive correlation is very high, so no matter how good or bad these hedging gains or losses are, share prices are still going to resemble what is going on with gas prices.

Will Electric Power Cause the Next Price Shock?

Good article.