Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Chesapeake Energy Corporation    CHK

News SummaryMost relevantAll newsSector newsTweets 

Chesapeake Energy Corporation : Chesapeake Sees 90% Of 2013 Capital Marked For Liquids Plays

share with twitter share with LinkedIn share with facebook
share via e-mail
05/22/2012 | 08:41pm CEST

--Chesapeake reiterates plan to focus on more-profitable oil production

--Overall 2013 capital budget to shrink

--Shares down 50% year-over-year amid low natural gas prices

(Updates with details throughout, analyst comment in final paragraph.)

By Ben Lefebvre


Chesapeake Energy Corp. (CHK) on Tuesday said it stands by its plan to expand its oil production, saying it will spend nearly all of its 2013 capital budget on drilling in oil fields.

Chesapeake, the largest natural-gas production company behind Exxon Mobil Corp. (XOM), has seen its stock plummet in the past year as gas supply has reached a seasonal record. Its plan to shift away from gas to more-profitable oil suffered a setback in the first quarter when the company said it had missed its oil-production target.

"We're working hard to escape the gravity of natural-gas prices," Jeff Mobley, Chesapeake's senior vice president of investor relations, told an audience at the UBS Global Oil and Gas Conference. "The vast majority of capital--90% next year--is going toward liquid-rich plays."

About 40% of Chesapeake's planned $7 billion capital budget in 2013 is earmarked for drilling in the liquids-rich Eagle Ford shale formation in South Texas, Mobley said. The company plans to shrink its 2013 capital budget from a planned $9.1 billion in 2012.

The company still plans on spending 7% of its capital budget on dry gas production despite gas prices being stuck under $3 per million British thermal units. Prices have only started recovering after hitting a decade low of $1.90 in late April, a drop caused by a mild winter that cut demand for home heating and resulted in an overhang of gas supplies.

Natural gas was trading at $2.69 a million British thermal units Tuesday, down 12% year to date.

Mobley said Chesapeake is "progressing" in its planned sale of prime oil real estate in the Permian Basin in West Texas, with a deal possible by the third quarter. Chesapeake hopes to sell up to $11.5 billion in assets to bring its debt down to $9.5 billion by the end of 2012.

Chesapeake shares are down more than 51% year over year amid sinking gas prices and claims that company chief executive and co-founder Aubrey McClendon made personal financial transactions with companies doing business with Chesapeake, deals that critics have said smack of conflict-of-interest.

The Oklahoma City company could turn things around on the inherent value of its assets, said Fadel Gheit, senior energy analyst at Oppenheimer & Co. "Although Chesapeake is fighting an uphill battle, we think its net asset value, after the pending asset sales, is several times its current share price," Gheit said in an research note.

-By Ben Lefebvre, Dow Jones Newswires; 713-547-9201; [email protected]; Twitter: @bjlefebvre

share with twitter share with LinkedIn share with facebook
share via e-mail
05/23 CHESAPEAKE ENERGY CORPORATION (NYSE : CHK) Files An 8-K Regulation FD Disclosure
05/23 CHESAPEAKE ENERGY CORP : Regulation FD Disclosure, Other Events, Financial State..
05/23 CHESAPEAKE ENERGY : OKC-based Chesapeake Energy to refinance $750 million in deb..
05/23 CHESAPEAKE ENERGY : Oklahoma City-based Chesapeake Energy to refinance $750 mill..
05/23 CHESAPEAKE ENERGY CORPORATION : Announces Pricing Of Private Placement Of $750,0..
05/22 CHESAPEAKE ENERGY CORPORATION (NYSE : CHK) Files An 8-K Entry into a Material De..
05/22 CHESAPEAKE ENERGY CORPORATION : Announces Cash Tender Offers For Up To $750 Mill..
05/22 CHESAPEAKE ENERGY CORPORATION : Announces Private Placement Of $750,000,000 Of S..
05/19 CHESAPEAKE ENERGY CORPORATION (NYSE : CHK) Files An 8-K Amendments to Articles o..
05/19 CHESAPEAKE ENERGY CORP : Amendments to Articles of Inc. or Bylaws; Change in Fis..
More news
Sector news : Oil & Gas Exploration and Production - NEC
05/24 Most Norwegian oil workers agree wage deal, mediation for rest
05/23 Norway oil ministry says has no plan to cut oil output
05/17 Australian firms say proposed anti-bribery laws may hamper overseas investmen..
05/15 TSX advances as banks, energy power broad rally
05/15DJMARKET SNAPSHOT : Stock Market Sets Fresh Records As Oil Rallies
More sector news : Oil & Gas Exploration and Production - NEC
News from SeekingAlpha
05/24 What Chesapeake Is Cooking Up In The Haynesville Shale
05/24 CHESAPEAKE ENERGY : Nothing Surprising Here
05/24 Where Is Natural Gas Production Heading? A Clue From The Top 10 Producers
05/24 CHESAPEAKE ENERGY : $750 Million Deal Is Worth It
05/23 Chesapeake Energy Corporation (CHK) Investor Presentation - Slideshow
Financials ($)
Sales 2017 9 992 M
EBIT 2017 1 247 M
Net income 2017 568 M
Debt 2017 11 025 M
Yield 2017 -
P/E ratio 2017 7,59
P/E ratio 2018 4,82
EV / Sales 2017 1,62x
EV / Sales 2018 1,41x
Capitalization 5 149 M
More Financials
Duration : Period :
Chesapeake Energy Corporat Technical Analysis Chart | CHK | US1651671075 | 4-Traders
Full-screen chart
Technical analysis trends CHESAPEAKE ENERGY...
Short TermMid-TermLong Term
Technical analysis
Income Statement Evolution
More Financials
Mean consensus HOLD
Number of Analysts 35
Average target price 6,99 $
Spread / Average Target 23%
Consensus details
EPS Revisions
More Estimates Revisions
Robert Douglas Lawler President, Chief Executive Officer & Director
R. Brad Martin Non-Executive Chairman
Jason M. Pigott Executive VP-Operations & Technical Services
Domenic J. Dell’Osso Chief Financial Officer & Executive Vice President
Cathy L. Tompkins CTO & Senior Vice President-Information Technology
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CNOOC LTD-5.49%52 558
More Results