You are right about the funding gap. I owned FCX back in 2001 when nothing but FCX's debt load for the Grasberg gold/copper mine was all anyone would highlight. Copper prices ran up, and FCX made so much money they bought Phelps Dodge too. The higher NG prices are making the CHK debt load an affectation of the bear story.
"Next, I would like to address our hedge position for 2013 and 2014. In 2013, we have put in place downside protection of approximately 78% of our projected natural gas production at an average price of $3.72 per Mcf. On the oil side, we have downtime protection on roughly 88% of our expected volumes at an average price of $95.43 per barrel. For 2014, we used recent strength in natural gas prices to hedge approximately 13% of our projected cash production at $4.33 per mcf. We have also put in place 2014 oil hedges that project our downside on approximately 40% of our projected production at an average price of $93.63 per barrel which is well above the current NYMEX strip."
CHK is hedged conservatively on the NG and Oil sides. This should add more confidence to their cash flow/earnings power going forward. I'm a lot more confident in this management team than ever before.