wags9999, I read this seeking alpha article, and it's a good one on CHK's business. The comments are very good, and should be read. This is one of them:
"There is some history behind the analysts negative behavior. CEO McClendon bet the farm (and most of his personal fortune) on natural gas a few years ago. When the natural gas prices dropped, CHK (and his personal fortune) got hurt badly. In fact that behavior accounts for a lot of CHK's current debt.
Analysts are worried the same thing could happen again. However, their cynicism is unwarranted in my view for the following reasons: 1) With the emerging economies worldwide, it is unlikely the bottom will drop out of oil prices. 2) CHK is scooping up huge prolific oil shale (and gas) fields early. It is proving the assets with minor development. Then it is selling a portion (usually 25%-35%) to another large company to essentially pay for all of the costs it incurred in the purchase and the early development. In this way it is getting large interests in prolific oil fields (and gas fields) for free. 3) CHK is paying off its debt slowly from its increasing profits. 4) CHK is emphasizing oil development activities over gas. Over the next few years, CHK will show increasing profits from oil. 5) Eventually natural gas prices will start to go up in the US. The emerging economies need fuel to grow. Natural gas is a cheap, clean fuel. More and more will try to take advantage of this. This means the natural gas prices will start to go up, especially as LNG emerges. When natural gas prices do go up, CHK will add huge natural gas profits to what should be huge oil profits. It seems likely at that point to emerge as one of the biggest and best energy companies in the world."