The Obama administration approves ConocoPhillips-led (COP +0.3%) Freeport LNG as the second U.S. liquefaction project to gain federal approval to export chilled natural gas to countries without free trade agreements with the U.S. The decision is an important harbinger for the remaining 19 applications to export gas to non-FTA countries. [View news story]
It has no direct effect as LNG already has Fedral approvals to export, but it does help support the gas export storey that it is real and starting to happen.
Chesapeake Energy: Another Step In The Right Direction [View article]
Sorry to say, but you are looking at the wrong ratios for CHK. Oil and gas companies are analysed on free cash flow, not P/E. CHK lives and dies by the natural gas price. No company can make a case for drilling and producing natural gas under $4.00 /mcf. T. Boon Pickens liquidated all his nat gas producer holdings for a similar reason. It appears to be a warmer than normal winter, hence the correction in gas prices. CHK faces mounting pressures to drill or lose more and more of their undrilled leases. Im not sure how it works in the U.S., but in Canada, if you don't drill a lease in 2 years, you lose the drilling rights, i.e, it reverts back to the owner.
The Obama administration approves ConocoPhillips-led (COP +0.3%) Freeport LNG as the second U.S. liquefaction project to gain federal approval to export chilled natural gas to countries without free trade agreements with the U.S. The decision is an important harbinger for the remaining 19 applications to export gas to non-FTA countries. [View news story]
Chesapeake Energy: Another Step In The Right Direction [View article]