CHK
Chesapeake Energy Corporation
Energy
12/18/2014
Presented
| Date | 12/16/2014 |
| Price | $17.45 |
| Market Cap | $11.40B |
| Ent Value | $27.38B |
| P/E Ratio | 23.09x |
| Book Value | $20.31 |
| Div Yield | 2% |
| Shares O/S | 654.66M |
| Ave Daily Vol | 12,140,000 |
| Short Int | 6.58% |
Current
| Price | $85.79 |
| Market Cap | $19.47B |
| Chesapeake Energy Corporation is engaged in the acquisition, exploration, and development of properties for the production of natural gas, oil, and natural gas liquids (NGL) from underground reservoirs in the United States. The company operates in three segments: Exploration and Production; Marketing, Gathering, and Compression; and Oilfield Services. It holds interests in natural gas resource plays, including the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas. The company also holds interests in liquids-rich resource plays, such as the Eagle Ford Shale in South Texas; the Utica Shale in Ohio and Pennsylvania; the Granite Wash/Hogshooter, Cleveland, Tonkawa, and Mississippi Lime plays in the Anadarko Basin in northwestern Oklahoma, the Texas Panhandle, and southern Kansas; and the Niobrara Shale in the Powder River Basin in Wyoming. It owns interests in approximately 46,800 natural gas and oil wells. As of December 31, 2013, the company’s proved reserves were 2.678 billion barrels of oil equivalent. In addition, it provides natural gas, oil, and NGL marketing services, including commodity price structuring, contract administration, and nomination services for Chesapeake-operated wells and other producers. Chesapeake Energy Corporation was founded in 1989 and is headquartered in Oklahoma City, Oklahoma. |
Please note, this idea was updated on 4/13/2015 and can be read here: Short - Chesapeake Energy Corporation (CHK).
Publicly traded companies mentioned herein: Chesapeake Energy Corporation (CHK), Southwestern Energy Co (SWN), Statoil ASA (STO)
Highlights
While investors and the Street are focused on the recent slide in the price of crude oil, the presenter said there is a “very interesting idiosyncratic short opportunity” in the natural gas segment of the market. “People are forgetting to do their nat gas homework,” and Chesapeake Energy (CHK) appears to be particularly vulnerable to a potential resetting of expectations for the future price range of natural gas in the US. In addition, the company is exposed to crude oil (albeit slightly), and is still running with too much leverage because the plan to divest assets to Southwestern is taking longer than expected.
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