Seeking Alpha

Chesapeake Energy again flirts with 20-year low

|About: Chesapeake Energy Corporation (CHK)|By:, SA News Editor

Chesapeake Energy (CHK -5.4%) resumes its downward slide potentially to another 20-year low in the wake of last week's going concern warning and disappointing Q3 results.

At last check, CHK was the most actively traded stock on all major U.S. exchanges.

Crestwood Equity Partners (CEQP -0.8%) also slides further into the red amid concerns over its exposure to CHK, which is one of its customers in the Power River Basin.

Stifel analyst Selman Akyol says CEQP's recent selloff has created an attractive entry point for investors, as the company already had assumed a lower rig count in the PRB by CHK in its 2020 outlook.

While PowderRiver producers have yet to finalize their drilling plans, Akyol believes "there is likely more upside to [CEQP's] PRB forecast than downside."

Try Seeking Alpha PREMIUM for unlimited analysis on CHK