Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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
0
05/22/2012 | 08:41pm CET

--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

Of

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; ben.lefebvre@dowjones.com; Twitter: @bjlefebvre

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on CHESAPEAKE ENERGY CORPORAT
06:46p CHESAPEAKE ENERGY : unveils new logo
01:21a CHESAPEAKE ENERGY CORPORATION : Lundin Law PC Announces Securities Class Action ..
12:08a CHESAPEAKE ENERGY : Rosen Law Firm Reminds Chesapeake Energy Corporation Investo..
12/02 CHESAPEAKE ENERGY : Announces Changes To Board Of Directors
12/02 CHESAPEAKE ENERGY CORP : Change in Directors or Principal Officers, Financial St..
12/02 CHESAPEAKE ENERGY CORPORATION : UPCOMING DEADLINE ALERT: Khang & Khang LLP Annou..
12/01 CHESAPEAKE ENERGY : Trademark Application for "CHESAPEAKE ARENA" Filed by Chesap..
11/30 CHESAPEAKE ENERGY CORPORATION : Lundin Law PC Announces Securities Class Action ..
11/29 CHESAPEAKE ENERGY CORPORATION : Khang & Khang LLP Announces Securities Class Act..
11/29 CHESAPEAKE ENERGY CORPORATION : DEADLINE ALERT: Bronstein, Gewirtz & Grossman, L..
More news
Sector news : Oil & Gas Exploration and Production - NEC
12:10a Grades narrow slightly on second day of new trade cycle
12/02DJUnited Continental to Pay $2.4 Million SEC Fine In Relation to S.C. Flight
12/02DJAsian Shares Drop as Trump Effect Fades
12/01DJOPEC Deal Fuels Asian Shares
12/01DJOPEC Deal Keeps Global Oil Prices Buoyant
More sector news : Oil & Gas Exploration and Production - NEC
News from SeekingAlpha
12/02 Time To Sell Tech
12/02 BAKKEN UPDATE : The Saudi Big Short Squeeze
12/01 Chesapeake To The Moon
11/30 Natural Gas Hedging Picks Up As Winter Uncertainty Remains
11/30 Chesapeake's Cash Flow Problems
Advertisement
Financials ($)
Sales 2016 7 993 M
EBIT 2016 137 M
Net income 2016 -3 869 M
Debt 2016 10 074 M
Yield 2016 -
P/E ratio 2016 -
P/E ratio 2017 9,55
EV / Sales 2016 2,06x
EV / Sales 2017 1,92x
Capitalization 6 416 M
More Financials
Chart CHESAPEAKE ENERGY CORPORAT
Duration : Period :
Chesapeake Energy Corporat Technical Analysis Chart | CHK | US1651671075 | 4-Traders
Full-screen chart
Technical analysis trends CHESAPEAKE ENERGY...
Short TermMid-TermLong Term
TrendsBullishNeutralBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 33
Average target price 7,44 $
Spread / Average Target 3,0%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Robert Douglas Lawler President, Chief Executive Officer & Director
R. Brad Martin Non-Executive Chairman
Domenic J. Dell’Osso Chief Financial Officer & Executive Vice President
Cathy L. Tompkins CTO & Senior Vice President-Information Technology
Merrill A. Miller Lead Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
CHESAPEAKE ENERGY CORP..60.67%6 416
EOG RESOURCES INC46.55%59 802
CONOCOPHILLIPS3.92%59 622
CNOOC LTD26.41%59 522
OCCIDENTAL PETROLEUM C..4.79%54 143
ANADARKO PETROLEUM COR..41.13%38 318
More Results