CHK got drilled today......interesting statement highlighting the prisoner's dilemma all NG cos find themselves in:
============== Chesapeake said that while asset sales generate cash, they decrease the cash flow generated by the company, and “reduce the amount and value of collateral available to secure our obligations, both of which are exacerbated by low natural gas prices.” ==============
what are earnings going to be in 2013 when XCO sells off its conventionals I ask you...
You are assuming natgas prices stay low. Hot summer, cold winter, Utilities switching from dirty expensive coal to cheap, clean gas, Trucks-Buses running on it. I know. I work in the industry. Natgas- hybrid buses. Japan-Germany= no more nuclear. Will need huge gas supplies. Pres. finally getting behind it. Hates oil, coal. Possible buyout candidate. Alot of consolidation going on. Cities, States shutting down, curtailing fracking operations. Wells being shuttered. Less drilling right now.
THIS IS THE FUTURE! May have to wait 6 months-1 year but IT'S COMING. It's called...getting in at the bottom!!!