Those of you with access to WSJ should read this article carefully and comment. The way I read it is OPEC tried to crush the frackers and have failed miserably.
CHK still made money at prices far lower than OPEC can stand. Keep in mind that 1st quarter profits reflect blended costs for the last 4 years, not costs for the next 4 years. CHK can make lots of money on $40 oil. OPEC countries descend into civil war and chaos at that price. Let the chaos begin. Whenever it happens, there will be a spike in oil and a good opportunity to take profits.
OPEC will continue to pretend to exist and breathless journalists will continue to travel to Switzerland and Austria to report every word they say. They are irrelevant. The frackers won.
Only the EPA can stop fracking.
I couldn't hear the CC. Looking forward to reading the transcript.
I don't see any mystery on the cash. They spent a lot more in the first quarter and the run rate for what they are projecting for the year. It was probably to fulfill contracts and finish work in progress. The rest of the year will be on target- another $2 billion.
I do not understand the fully diluted shares either. That should have been the preferred shares, right? But the preferred shares are still on the balance sheet.
Why do they ANALysts not ask these questions? It seems like that should have been an obvious one.
They will hit their targets. I do not see why the SP is down so much. These headlines are probably separating the fools from their money.
"Per share loss of $5.72 in "real" terms."
I don't know where you get that this was a "real" loss. They wrote down assets per GAAP. GAAP is nonsense. They sold 6% of the company for $5billion less than a year ago. That could not be considered under GAAP. The end of the first quarter was the bottom on oil prices. The nonsense accounting losses are over.
We know revenue was held back because of pricing, but they beat earnings anyway. This is a very good report.
They found methane and 2-BE thousands of feet from the drilling.
Methane is everywhere. That is the propellant behind "Beans, Beans Musical Fruit". How can it found at toxic levels in water, when our guts are full of it.
2-BE is another name for butoxy ethanol, AKA butyl cellosolve, AKA ethylene glycol monobutyl ether. Check your glass cleaner label. It probably has a lot of it. I am a retired detergent scientist. This is very standard stuff. I am retired from Ecolab. They make a lot of the fracking fluid. I doubt if they or anyone else would use much 2-BE in fracking fluid.
What they found could have been contamination from laboratory cleaners. There are so many sources, they have no evidence that it came from drilling.
Whatever!!! It sounded good to the clueless journalism major.
According to the Washington Post, Freddie (the drug dealing thug) was attempting to injure himself- probably to create the illusion of police brutality- and severed his own spine. Too bad more drug dealers lives can't end that way. Also, too bad that a bunch of people were thrown out of work in Baltimore because of mindless rioting.
If you add up Ferguson, NYC and Baltimore you have:
White Democrat on Black Democrat violence.
Black Democrat on White Democrat violence.
Black Democrat on Black Democrat violence.
Does anyone see a pattern??? Vote Republican
First, can't you find a better source of information than Media Mutters?
Second, Graham is no conservative. Who cares what he says?
Third, Obummer started all these Middle East wars with his incompetence. This is like 1938- I expect it to get much worse before Obummer is finally out of office.
Fourth, conservatives already vastly outnumber liberals in the military. Especially, conservative sons and daughters of congressmen. Look it up.
There are four classes of CHK Preferred Stock that add up to an ultimate dilution when converted of over 110 million shares. I think the holders of these preferred shares represent most of the shorts. I don't know why they are doing it now, but it allows them to take a lot of money off the table and eliminate risk while still making a lot of money since the dividends they receive on the preferred shares is about twice as much as the dividends that they have to pay on the shorted common shares.
Any idea who the holders of the preferred are or other insight into this???
During 2014, CHK set up a contingency of $250M for legal expenses. This $25M settlement will probably be taken out of that. Any guesses how much of the $350M was for Michigan? We could actually see a gain in earnings if they decide they set aside too much. Any thoughts?
For the last month,
CHK up 8%
XOM up 2 %
For the last week (including today)-
CHK up 2%
XOM up 1.5 %
CHK will not revisit the lows. It is headed north- earnings will only affect how much.
The only reason people would look at CHK as a merger potential is if they believe the nonsense headline claims of CHK having a weak balance sheet. CHK is severely undervalued by everyone except the owners. We are not going to sell at less than $30 and no body is going to pay $30.
Why would they even be sniffing around? There are plenty of weak companies in the oil patch to stalk. CHK isn't one of them. CHK is more likely to be doing the stalking.
I bought back at $31.65, but sold $31.50 options that expire this week for $.65. If INTC closes just under $31.50 this week, I will feel real smart- maybe take my wife out to dinner. Oh, wait, this is in her IRA. Maybe she can take me out to dinner?
Since I sold $31.50 calls last week and my shares were called away on Saturday, I have a strong desire that there is no deal (today) and the SP drops back to closer to $30 so I can buy back. If it does, that will be the easiest money I ever made.
I sounds like a deal would be good for both companies, but I question why it would make INTC go up 6%. Generally, the buyers SP goes down to reflect some dilution and some sour grapes. If there is no announcement before opening, I expect a fairly large drop in SP. Even if there is an announcement, I doubt if $32 could hold.
I will be interesting.
If INTC bought a $10 billion company, they must be paying something in that order for it. Why would INTC value go up $6 billion? It is only a rumor on top of that.
I sold $31.50 options against my holdings last week, so I am out as of tomorrow. What is the likelihood that I can replace those shares next week at less than $31.50? I thought the memory announcement yesterday was a lot bigger than this.
Do I understand correctly that since WTI has a lower average molecular weight distribution than Brent or other heavier crudes, it requires less cracking to make more gasoline relative to Brent? On the other hand, you can't get as much heating oil from WTI. As a result, WTI should be more valuable during the summer driving season. Is that correct?
Is there a lot of C5- C8 that has less value in WTI? What is done with that?
They are actually up in CO, OK, PA, and WV. Canada and off shore down big. Could it be that the economics of fracking in some locations is better than Canada and off shore? This could be very good news for frackers.
The Barrons article was yesterday, was stupid, but beat down the SP anyway. Today, CHK should be recovering big as cooler heads prevail.