this stock already sold off in advance of this news. There has been speculation for months. Tomorrow is capitulation and therefore, the bottom.
he has never said that. there is a difference between saying cash flow positive vs. earnings positive.
This is what bulls want to see. Capex discipline.
or the stock is down a lot because a big dilutive event is about to happen
Isn't there a conflict of interest between Davita and Auryxia? What incentive do they have to use a drug that may reduce their future business
these wells do not go to zero though, and costs are going to drop a lot. I think there is a difference between business going down and complete destruction. The stock is trading like EBITDA will be $500mm a quarter.
Let's be real here. Every time this has happened in the oil industry banks do everything they can to accommodate on terms. Banks are better off trying to structure a deal than no deal. CHK clearly has enough cash flow to pay interest. Yeah the stock has tanked, but with all the hedges in place, cash flow is pretty much set for the rest of the year, and dividend payments relief helps even more.
So all the wells they drill this year will help next year as there is a baseline EUR after the initial 90 days. So go ahead keep beating it down at this price.
Also before they have to borrow they have to burn through over $2bn in cash. Shorts will see that burn is not going to happen as much as they like. EBITDA around $900mm and no dividend payments equal much slower burn going forward.
EOG, CLR, SWN, RRC...if they really care about a dividend why should CHK