"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.

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.

Chesapeake Energy (NYSE: CHK) closed at $45.25 Monday. Natural Gas futures are recently down 2.25% to $8.53 according to Bloomberg. BMO Capital Markets has a $68 target price on CHK. CHK September option implied volatility of 61 is above its 26-week average of 42 according to Track Data, suggesting larger price movement.

SPDR Gold Trust (NYSE: GLD), a commodity-based exchange traded security, closed at $86.84. Gold is recently trading down 1.70% to $892.50. GLD option volume was heavy on August 4, 2008 with 106,112 contracts trading. GLD over all option implied volatility of 25 is near its 9-week average according to Track Data, suggesting non-directional price movement.

Companhia Vale do Rio Doce (NYSE: RIO) will report Q2 EPS on August 6. RIO, a Brazilian mineral company, closed at $26.36. Goldman has a Buy rating on RIO. RIO option volume was heavy on August 4, 2008, with 237,545 contracts trading. RIO August option implied volatility is at 66, September is at 56; above its 26-week average of 49 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Commodity selloff causes higher volatility originally appeared on BloggingStocks on Tue, 05 Aug 2008 08:30:00 EST. Please see our terms for use of feeds.

Chesapeake Energy (CHK) lifted by jump in energy futures originally appeared on BloggingStocks on Fri, 11 Jul 2008 12:54:00 EST. Please see our terms for use of feeds.

Chesapeake Energy Corporation (NYSE: CHK) is engaged in the acquisition, exploration, and development of properties for the production of natural gas and crude oil. The firm is the second-largest independent producer and third-largest overall producer of natural gas in the United States. Company properties are located in the US midcontinent region, along the Gulf Coast, in the Permian Basin, and in the Ark-La-Tex region. It owns interests in nearly 39,000 producing wells and has nearly eleven trillion cubic feet equivalent of proved reserves.

Chesapeake pleased investors last week, when it announced that it had formed a joint venture with Goodrich Petroleum (NYSE: GDP) that would give it working interests in deep strata of the Haynesville Shale of East Texas and Louisiana. The move is expected to make Chesapeake the largest U.S. natural-gas producer, pushing it past BP (NYSE: BP) and Anadarko Petroleum (NYSE: APC).

Continue reading Chesapeake Energy (CHK): Shares cycle in bullish 'flag' consolidation pattern

Chesapeake Energy (CHK): Shares cycle in bullish 'flag' consolidation pattern originally appeared on BloggingStocks on Wed, 25 Jun 2008 13:41:00 EST. Please see our terms for use of feeds.

Chesapeake Energy (CHK) announces joint venture in Louisiana originally appeared on BloggingStocks on Mon, 16 Jun 2008 14:35:00 EST. Please see our terms for use of feeds.

"The boom in natural gas prices has been good for North American producers and their investors, both of which continue to be upbeat on the sector as share prices also keep rising," says Bill Martin.

In his exceptional BullMarket.com, he looks at SandRidge Energy (NYSE: SD), where its billionaire CEO as well as a director have continued to buy shares, despite the stock trading near "peak levels."

"Oklahoma City-based SandRidge focuses on the exploration, development, and production of oil and gas in the West Texas Overthrust, East Texas, and Mid-Continent (Oklahoma) regions.

"President, and CEO Tom Ward purchased 460,000 shares at $48.95 on May 19th/20th, which increased his already substantial holdings to nearly 36.95 million shares, or a 25.27% stake.

"It was the first purchase for Ward since he announced in March his attention to buy up to $100 million in stock on the open market this year. His only other open-market purchase came in November 2007, when he took down 4.17 million shares at $26.00 in the company's initial public offering.

Continue reading Billionaire builds stake in Sandridge Energy (SD)

Billionaire builds stake in Sandridge Energy (SD) originally appeared on BloggingStocks on Mon, 02 Jun 2008 15:17:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Merger talks between UAL Corporation's (NASDAQ: UAUA) United Airlines and US Airways Group Inc (NYSE: LCC) have been put off for now, the Wall Street Journal reported. United is reportedly close to an alliance with Continental Airlines Inc (NYSE: CAL).
• Harris Corporation (NYSE: HRS) is for sale and the company has begun to hear from interested parties, the Wall Street Journal also reported. Harris is looking for $75 to $80 per share. Speculation about the bidders includes General Dynamics Corporation (NYSE: GD) and Northrop Grumman Corporation (NYSE: NOC).

• The Charleston Gazette reported that Chesapeake Energy Corporation (NYSE: CHK) has decided not to build its Eastern Division headquarters in Charleston, West Virginia in the wake of a West Virginia Supreme Court ruling on May 22.

• AppleInsider reported that Apple Inc (NASDAQ: AAPL) is expected to announce a back-to-school deal soon that will encourage students to buy new Macs by offering some of the largest incentives in the history of the company.

Newspaper wrap-up: United Airlines puts US Airways on hold, talks to Continental originally appeared on BloggingStocks on Fri, 30 May 2008 08:00:00 EST. Please see our terms for use of feeds.

Chesapeake Energy (NYSE: CHK) is the largest independent and third-largest overall producer of natural gas in the U.S.

Bloomberg reports Natural Gas Futures are up 0.20% to 11.621.

CHK option implied volatility of 40 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

NASDAQ 100-QQQQ overall implied volatility at 24; 26-week average is 28

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Chesapeake Energy volatility elevated; shares near record high originally appeared on BloggingStocks on Thu, 15 May 2008 09:45:00 EST. Please see our terms for use of feeds.

Continue reading Chesapeake Energy (CHK) soars on Q1 earnings

Chesapeake Energy (CHK) soars on Q1 earnings originally appeared on BloggingStocks on Fri, 02 May 2008 13:20:00 EST. Please see our terms for use of feeds.

"After coal, natural gas is the No. 2 source for power generation; and the largest source of gas production in the US is now unconventional reserves," explains Neil George.

In his Personal Finance newsletter, the advisor looks at two favorites plays on this trend: Chesapeake Energy (NYSE: CHK) and XTO Energy (NYSE: XTO). Here is his review.

"Unconventional reserves now account for close to 40% of all domestic gas production. In addition, with the possible exception of deepwater fields, unconventional production is the only domestic source of gas that's likely to show real growth in coming years.

"The term 'unconventional' refers to any gas field that can't be produced economically using traditional well technologies. But, using a combination of new techniques, wells drilled in unconventional fields are prolific producers. US natural gas producers remain on a 17%-plus tear in gains so far this year.

Continue reading 'Unconventional' gains in natural gas

'Unconventional' gains in natural gas originally appeared on BloggingStocks on Wed, 23 Apr 2008 15:33:00 EST. Please see our terms for use of feeds.

Chesapeake Energy Corporation (NYSE: CHK) implied volatility up on gas price movement and expected fund raising.

CHK is the largest independent and third largest overall producer of natural gas in the U.S. Bloomberg reports Natural Gas Futures are up .88% to 5.63. CHK has a market cap of $15 billion with long-term debt of $8.3 billion. CHK announced on 8/8/07 a $500 million issuance of convertible senior notes (convertible debts increases volatility). CHK filed to sell EUR $525 million in senior notes on 11/27/06. CHK filed to sell $792 million in senior notes on 12/1/06. CHK filed to sell 30 million shares in a secondary on 12/7/06. CHK October option implied volatility of 33 was above its 26-week average of 28 according to Track Data, suggesting larger price risk.

Kimberly-Clark Corporation (NYSE: KMB) implied volatility flat; KMB has low debt to equity ratio.

1.3 billion people, nearly a quarter of the world's population, use KMB brands every day. KMB is recently down 98 cents to $68.42. KMB has a market cap of $29 billion with long term debt of $3 billion. KMB reported 2006 revenue of $16.7 billion. KMB has been frequently mentioned as an LBO candidate in 2006. KMB option implied volatility of 18 was near its 26-week average according to Track Data, suggesting non-directional risks.

Daily options update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 8-30-07: Chesapeake Energy (CHK) volatility up originally appeared on BloggingStocks on Thu, 30 Aug 2007 18:16:00 EST. Please see our terms for use of feeds.

Chesapeake Energy rises along with natural gas futures originally appeared on BloggingStocks on Mon, 04 Jun 2007 13:15:00 EST. Please see our terms for use of feeds.

A recent article by The Motley Fool argued that Chesapeake Energy Corp. (NYSE: CHK) was a much better investment than Citigroup Inc. (NYSE:C). According to Philip Durell's analysis, Chesapeake Energy is one of the country's largest independent oil and gas companies. 92% of the company's assets are in natural gas. Chesapeake Energy has spent $14 million purchasing land on which to ramp up its drilling program. The company currently has proven reserves of 9 trillion cubic feet equivalent in natural gas, enough to last 15 years at current usage levels. Additionally, probable reserves amount to another almost 18 trillion cubic feet equivalent.

The Fool likes Chesapeake Energy for a number of reasons. Natural gas prices do not fluctuate wildly. Gas futures on the NYMEX run between $6.90-$9.20 per million cubic feet equivalent depending how far out the delivery date would be. This is a very profitable price range for Chesapeake Energy, which owns and leases more than half of its 135 drilling platforms. Due to its land purchase program, Chesapeake Energy is able to concentrate drilling platforms, thus reducing operating costs. The company also has experience in various forms of gas drilling and exploration.

Durrell thinks the stock is currently undervalued, trading at 60 cents on the dollar, making it a much better investment option than Citigroup.

Fools bet on Chesapeake Energy originally appeared on BloggingStocks on Wed, 21 Mar 2007 10:26:00 EST. Please see our terms for use of feeds.

Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.

stocks rose Monday as 10-year interest rates moved up to 4.66%. The Dow closed up 0.26%, NASDAQ 100 up 0.26%, S&P 500 up 0.27%, and the 10-year bond rate rose to 4.660%. Volatility Index S&P 500 Options-VIX closed down 0.23 to 11.91.

The Gap Implied Volatility & Volume Increases After CNBC's Faber Says Goldman Hired

The Gap Inc. (NYSE:GPS), is the San Francisco-based parent company of 3,200 Gap, Old Navy & Banana Republic stores. GPS closed Monday up $1.37 to $20.26 after CNBC's David Faber reported Goldman Sachs was hired to explore strategic alternatives. GPS CEO Paul Pressler has been operating GPS for over four years. The Los Angeles Times reported a story on January 6 2007 that quoted analysts as saying they expect GPS to make some type of change. GPS call option volume of 21,511 contracts compares to put volume of 17,152 contracts. GPS February option implied volatility of 35 is above its 26-week average of 30, according to Track Data, suggesting larger price fluctuations.

Continue reading Daily Option Update - January 8, 2007

Daily Option Update - January 8, 2007 originally appeared on BloggingStocks on Mon, 08 Jan 2007 21:57:00 EST. Please see our terms for use of feeds.