Chesapeake's (CHK) natural gas price per million cubic feet is slowly rising again after witnessing a steep decline, from $7.74 in 2008 to $3.16 in 2009, as a result of weak consumer demand during the economic downturn. As crude oil prices continue to rise and the oversupply of gas declines, we expect Chesapeake's natural gas price to increase to around $6.2 per million cubic feet by the end of our forecast period. Chesapeake competes with other oil and gas producers like Exxon (XOM), ConocoPhillips (COP), Anadarko, (APC) BP (BP) and Chevron (CVX).

Continue reading Chesapeake's Market Price Justified Given Optimistic Natural Gas Price Outlook

Chesapeake's Market Price Justified Given Optimistic Natural Gas Price Outlook originally appeared on BloggingStocks on Tue, 01 Mar 2011 14:40:00 EST. Please see our terms for use of feeds.

Continue reading Long-Term Puts are Popular on Chesapeake Energy

Long-Term Puts are Popular on Chesapeake Energy originally appeared on BloggingStocks on Fri, 25 Feb 2011 13:40:00 EST. Please see our terms for use of feeds.

Chesapeake's (CHK) natural gas price per million cubic feet is slowly rising again after witnessing a steep decline, from $7.74 in 2008 to $3.16 in 2009, as a result of weak consumer demand during the economic downturn. As crude oil prices continue to rise and the oversupply of gas declines, we expect Chesapeake's natural gas price to increase to around $6.2 per million cubic feet by the end of our forecast period. Chesapeake competes with other oil and gas producers like Exxon (XOM), ConocoPhillips (COP), Anadarko (APC), BP (BP) and Chevron (CVX).

Continue reading Chesapeake's Market Price Justified Given Optimistic Natural Gas Price Outlook

Chesapeake's Market Price Justified Given Optimistic Natural Gas Price Outlook originally appeared on BloggingStocks on Thu, 24 Feb 2011 14:00:00 EST. Please see our terms for use of feeds.

Chesapeake Energy (CHK) announced it has agreed to sell approximately 487,000 net acres of leasehold and producing natural gas properties in the Fayetteville Shale play to BHP Billiton (BHP) for $4.75 billion in cash before certain deductions and standard closing adjustments. Chesapeake Energy overall option implied volatility of 34 is near its 26-week average, according to Track Data, suggesting non-directional price movement.

CBOE Volatility Index (VIX) was up 27% to 20.94.

Options Update is by stock specialist Paul Foster of theflyonthewall.com.

Options Update: Chesapeake Volatility Flat into Sale of Shale Assets to BHP Billiton for $4.75B originally appeared on BloggingStocks on Wed, 23 Feb 2011 09:00:00 EST. Please see our terms for use of feeds.

Here is a game changer. The natural gas market is about to become an export market. The U.S. has abundant natural gas and now two companies plan to take advantage of the opportunity, as reported in the Wall Street Journal (subscription required).

First we have privately owned Freeport LNG Development, working with Australian Macquarie Group (MQBKY), expecting to receive export permits. The company has an import terminal and it plans to add the equipment that will allow it to export as well.

Continue reading U.S. Firms to Export Natural Gas

U.S. Firms to Export Natural Gas originally appeared on BloggingStocks on Fri, 04 Feb 2011 11:30:00 EST. Please see our terms for use of feeds.

Continue reading Chesapeake Energy Rises on 2010 Output Report

Chesapeake Energy Rises on 2010 Output Report originally appeared on BloggingStocks on Thu, 06 Jan 2011 13:40:00 EST. Please see our terms for use of feeds.

Continue reading Carl Icahn Discloses 5% Stake in Chesapeake Energy

Carl Icahn Discloses 5% Stake in Chesapeake Energy originally appeared on BloggingStocks on Mon, 20 Dec 2010 14:30:00 EST. Please see our terms for use of feeds.

Chesapeake Energy (CHK) Monday morning was upgraded to outperform from market perform at BMO Capital. The brokerage house cited valuation as the reason for the upgrade, stating that the shares are "attractively priced at three times next year's expected discretionary cash flow compared to a median multiple of around five times at the group's larger peers," according to MarketWatch.

BMO also feels CHK's use of joint ventures to raise cash and finance capital expenditure could lead to higher cash flow yields and returns on capital, MarketWatch reported. Along with the upgrade, the ratings house assigned a price target of $30 per share for CHK.

Continue reading BMO Capital Upgrades Chesapeake Energy

BMO Capital Upgrades Chesapeake Energy originally appeared on BloggingStocks on Mon, 16 Aug 2010 10:30:00 EST. Please see our terms for use of feeds.

"If there was ever a stock we can hold for a few years, natural gas company Chesapeake Energy (NYSE: CHK) is it," says Ian Wyatt. Here's the latest from his Top Stock Insights.

"Chesapeake Energy is the largest independent natural gas company and most active driller of wells in the US. Its operating activities include the onshore exploration and production of natural gas.

"The Obama administration is keen on achieving energy independence for the US. Natural gas is a good option for energy, since it is inexpensive, clean and domestic. I believe the administration will continue to push natural gas as an alternative to oil, and create incentives for the industry.

Continue reading Chesapeake (CHK): A natural in natural gas

Chesapeake (CHK): A natural in natural gas originally appeared on BloggingStocks on Tue, 15 Sep 2009 11:20:00 EST. Please see our terms for use of feeds.

The interest in using natural gas as an alternative to crude has helped natural gas-based companies appreciate in value. Chesapeake Energy (NYSE: CHK) has benefited from that interest, with a gain of more than 20% this year.

CHK is an interesting story in that during the craze in energy prices in 2008, the CEO of the company was forced to liquidate his entire position. That forced selling created an opportunity to buy the stock at an incredibly cheap price, even beyond the artificially low energy prices reached earlier this year.

Continue reading Oil stock #5: Chesapeake Energy (CHK)

Oil stock #5: Chesapeake Energy (CHK) originally appeared on BloggingStocks on Sun, 28 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

You have to love OPEC. It's not uncommon for the barons of the giant cartel to voice their interest in seeing oil at such-and-such a price.

Recently, OPEC reiterated its desire to see oil prices at $80 per barrel. This, they claim, is the price needed to spur additional investment in crude projects. Apparently, anything less will result in oil sitting idle in the ground.

Continue reading Sell these hot oil stocks for big profits now

Sell these hot oil stocks for big profits now originally appeared on BloggingStocks on Sat, 27 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Blizzard Inc. (NASDAQ: ATVI) Q1 results beat expectations and raised its guidance.
• Alpha Natural Resources Inc. (NYSE: ANR) shares surged after the it reported strong Q1 earnings.
• Archer Daniels Midland Co. (NYSE: ADM) just missed swinging to a loss due to to hefty investment losses.
• CBS Corp. (NYSE: CBS) surprised with a net loss in Q1 as revenue and cash flow declined.
• Chesapeake Energy Corp. (NYSE: CHK) shares fell after it reported disappointing results for the quarter.

Continue reading Earnings highlights: GM, Toyota, CBS, Sprint, ADM, MGM, Nintendo, UBS and more

Earnings highlights: GM, Toyota, CBS, Sprint, ADM, MGM, Nintendo, UBS and more originally appeared on BloggingStocks on Sat, 09 May 2009 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Time to get-ahead-of-the-pack with Chesapeake Energy

Time to get-ahead-of-the-pack with Chesapeake Energy originally appeared on BloggingStocks on Mon, 04 May 2009 13:30:00 EST. Please see our terms for use of feeds.

Analyst Phil Weiss of Argus Research is none too impressed with the recent debt offering by Chesapeake Energy Corporation (NYSE: CHK). The natural gas concern on Wednesday sold $1 billion in six-year notes, with proceeds going toward outstanding indebtedness under CHK's credit facility. The offer was hiked from its initial planned value of $500 million.

Additionally, Chesapeake said it "anticipates reborrowing [under its revolving bank credit facility] from time to time to fund drilling and leasehold acquisition initiatives and for general corporate purposes." It seems the commodity firm is growing steadily more cavalier with its balance sheet -- CHK ended the fiscal year with just $1.75 billion in cash, compared to its December forecast of $2.5 billion.

Continue reading Chesapeake Energy's management is 'losing all credibility,' warns analyst

Chesapeake Energy's management is 'losing all credibility,' warns analyst originally appeared on BloggingStocks on Thu, 29 Jan 2009 15:30:00 EST. Please see our terms for use of feeds.

Chesapeake retains CEO Aubrey McClendon originally appeared on BloggingStocks on Thu, 08 Jan 2009 17:45:00 EST. Please see our terms for use of feeds.

Energy stocks are getting hammered today, thanks in no small part to renewed demand concerns following the Labor Department's gruesome nonfarm payrolls report. Natural-gas concern Chesapeake Energy Corporation (NYSE: CHK) is blazing the path lower, with the shares hitting a new 5-year low of $9.86 earlier today.

In fact, CHK has been reeling since late November, when the commodity firm filed a shelf registration to issue $2 billion worth of shares in a bid to raise cash. The move sparked anxiety among investors about share dilution, and it also raised questions about Chesapeake's liquidity position. In response to the news, brokerage firm Calyon Securities on Wednesday slashed the stock's rating from Buy to Underperform, and cut its price target from $41 to $15.

Other analysts are concerned, too; Phil Weiss of Argus Research told Reuters today that "the stock could easily go to $2 a share on fear and panic." Chesapeake CEO Aubrey McClendon asserted yesterday that his company is "in excellent position to weather the current difficult economic situation in the U.S.," but it remains to be seen whether this comment will be sufficient to soothe an increasingly emotional market.

Plus, CHK looks highly vulnerable to more downgrades in the near future. Zacks reports a staggering 16 Strong Buy ratings from analysts, along with one Buy, six Holds, and absolutely no Sells. Any further negative notes from brokerage firms could potentially smack the shares deeper into single-digit territory.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

Chesapeake Energy plunges to five-year low as dilution, demand concerns weigh heavy originally appeared on BloggingStocks on Fri, 05 Dec 2008 13:04:00 EST. Please see our terms for use of feeds.

"Oil stocks have been hinting at a rebound; as much as I think that crude oil is oversold, natural gas looks even cheaper," says Charles Payne.

The editor of WStreet Strategies explains, "Natural gas has a propensity to become oversold, and this is one of those instances." Here, the advisor reviews a pair of favorites in the sector.

"Natural gas is at April 2005 levels, the economy will drift but it's not going to roll back to levels of three years ago.

"Moreover, demand should surge as the nation's demands on the electric grid increase exponentially over the next few years. Folks, plug-in cars are going to suck up all the coal and natural gas available, and demand even more.

"In the near-term, I think that the risk/reward has shifted substantially and should trade in a range of $6.50 to $9.50, but at some point soon the bias will shift higher.

"Chesapeake Energy (NYSE: CHK) is down big time, and made news for one of the most famous executive margin calls in this current meltdown.

"Although the company's CEO, Aubrey McClendon, was forced to sell over 90% of his holdings he was putting his money where his month was.

Continue reading 'Natural' picks: Chesapeake (CHK) and Mainland (MNLU)

'Natural' picks: Chesapeake (CHK) and Mainland (MNLU) originally appeared on BloggingStocks on Fri, 07 Nov 2008 14:20:00 EST. Please see our terms for use of feeds.

While other earnings may have disappointed last week, the news was good for oil giant ConocoPhilips (NYSE: COP). In what some took as a good sign for big oil, the Houston-based company reported that third quarter net income surged 41% year over year to $3.39 per share, and that revenue also surged 52% to $70 billion. We'll see whether the good news extends to other petroleum giants scheduled to report quarterly results this week.

Analysts surveyed by Thomson Financial are looking for BP (NYSE: BP) profits to have grown 43.2% in the most recent quarter to $2.34 per share on revenue of $109.7 billion, and Chevron Corp. (NYSE: CVX) to post earnings up 39.4% to $3.25 per share on revenue of $86.8 billion. Marathon Oil Corp. (NYSE: MRO), ExxonMobil Corp. (NYSE: XOM), and Royal Dutch Shell (NYSE: RDS.A) likewise are expected to report higher net income of $2.33 per share (sales of $23.4 billion), $2.40 per share (sales of $131.4 billion), and $2.65 per share, respectively. Even Valero Energy Corp. (NYSE: VLO) is expected to post earnings slightly higher to $1.46 per share (sales of $36.4 billion), despite the effects of Hurricane Ike. Among these companies, only BP and Valero beat earnings expectations in the previous quarter. Not surprisingly, analysts on average recommend buying all except Valero, and shares of all of these companies have recently hit 52-week lows.

Continue reading The week in preview: Focus on oil and energy

The week in preview: Focus on oil and energy originally appeared on BloggingStocks on Sun, 26 Oct 2008 12:30:00 EST. Please see our terms for use of feeds.

In a stunning reversal of fortune, Chesapeake Energy Corp.'s (NYSE: CHK) CEO put out a press release after the close of trading on Friday disclosing that he "involuntarily sold substantially all of his shares of Chesapeake common stock over the past three days in order to meet margin loan call."

Aubrey K. McClendon stated that "I am very disappointed to have been required to sell substantially all of my shares of Chesapeake. These involuntary and unexpected sales were precipitated by the extraordinary circumstances of the worldwide financial crisis. In no way do these sales reflect my view of the company's financial position or my view of Chesapeake's future performance potential. I have been the company's largest individual shareholder for the past three years and frequently purchased additional shares of stock on margin as an expression of my complete confidence in the value of the company's strategy and assets. My confidence in Chesapeake remains undiminished, and I look forward to rebuilding my ownership position in the company in the months and years ahead."

Read the Form 4 here. It's a little bit sad to watch this happen. McClendon's stake in Chesapeake landed him at number 134 on the 2008 Forbes list, He is also a part owner of the NBA's Oklahoma City Thunder.

It's now clear what one major driver of the sell-off in the company's shares this week was -- it may have presented a buying opportunity and, while it's sad to see someone wiped out, this aggressive insider buys with borrowed funds indicate strong confidence in the company.

Chesapeake Energy CEO gets margin call; sells entire stake originally appeared on BloggingStocks on Sat, 11 Oct 2008 09:10:00 EST. Please see our terms for use of feeds.

"Mainland Resources (NASDAQ: MNLU), a small natural gas play, could be a giant in the space in a short period of time," says Charles Payne.

In his WStreet Market Commentary, he explains, " The company involved in the super exciting Haynesville shale region, which could be one of the largest domestic on shore natural gas fields ever."

"The stock has been coming on lately as more investors learn about the company's potential in the Haynesville shale region.

"Discovered in March of this year, the Haynesville field -- according to Energy and Capital -- could conservatively hold 168 trillion cubic feet of natural gas. Chesapeake Energy (NYSE: CHK) has declared Haynesville the most important find in its 19 year history.

"There was always a notion that a big find was in the space that the company currently owns (2,700 acres), but when it was first explored back in the 1950 crude oil prices were much lower and there was no technology to get to the natural gas.

Continue reading New 'giant' gas field boosts Mainland Resources (MNLU)

New 'giant' gas field boosts Mainland Resources (MNLU) originally appeared on BloggingStocks on Thu, 14 Aug 2008 11:41:00 EST. Please see our terms for use of feeds.