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Chesapeake Energy (NYSE: CHK): Looking More Like a Debt Play

|Includes: Chesapeake Energy Corporation (CHK)
CHK got caught in the crossfire of massive debt, massive oversupply of natural gas with no pricing power, and years of proliferation of extremely risky off balance sheet debt/forward sales to mortgage their production assets.

While we have valued CHK common equity at $22/share "as is", we continue to conduct further analysis into the Company debt structure and complex web of off balance sheet financing.

We are finding it extremely difficult to stand behind our current equity valuation of $22/share, which is well below the current market price range of $30/share.

CHK is looking more like a pure debt play and we may revise our Net Asset Value downwards upon further review.