to come up with projected oil revenue. Mclendon says it all right here. A Double in profits. Among the very biggest in the world.
"McClendon told The Associated Press he foresees a day when Chesapeake's revenues will be split evenly between oil and natural gas".
NG will sales will NOT go down. As the years go by so will CHK's NG sales. That means that the oil business will have to increase at a faster pace to gain on the NG revenue. A very significantly faster pace to catch yearly NG Revenue.
My preliminary calculations bring me to a 7,000% increase in oil revenue PER Year to catch NG revenues in 37 Months. LOL...My numbers may be off just a little bit but you get the point correct?
Are you missing the REAL POINT????? ....McClendon made the wrong bet [on Nat Gas] and now he has to redeploy captial to get into the oil business.....a problem when you are heavily leveraged as CHK is and your hedged to cover the loan cashflow requirments.
Now he must reinvent company into an oil company.................GOOD LUCK!
Carl Icahn just invested $1 billion dollars in CHK.
You think he wrote that check without having his financial analyst and cpa firm go through every footnote and every item on the financial statements.
He is not worried about getting the oil out and having the money to do it. So us peons on this board that own a few hundred shares or a few thousand shares are here for the ride.
You want us to believe you, that this is a bad investment, company is poorly financed and does not have the money to drill oil wells or liquid wells for the next 4-5 years.
What are you using for brains???
By the way, Pickens is a worth a billion dollars and he owns a few hundred million dollars worth of this company.
So you want us to believe you know more about the finances of this company and the opportunity is not a good one to make money in.
Are you that stupid or do you just not know how these two businessmen got to be billionaires? Do you really think these billionaires do not understand "value". I got news for you, people who make a billion dollars and do not inherit it, are smarter and make fewer mistakes than the rest of us.
So you are telling us that either you are brain dead or those two are brain dead. Be specific and tell us why we should believe you know what you are talking about and Icahn and Pickens are the stupid ones.
Oh, on another point, did you realize that Total, BP and CHOOC, three multi-billion dollar companies gave CHK $2B each to drill with them on their land. Do you really think those companies do not make good money when they put that kind of money to work or do those companies just not know how to make money in the oil and gas business.