You're correct about NG use Barry.
Like I have always said, "Nat Gas Use Is Growing Quickly"!
Hi all, I'm surprised that NG keeps on rising.
I know that CHK has a big precentage of their NG hedged at something like $2.45, which was really high when they did the hedges.
Now that NG is at $2.73, I wondered at what price does CHK start making enough of a profit to start turning those spigots back on?
Good Luck To All Longs !
Those NG prices keep going up.
I'm surprised and very happy!
CNBC shows NG at $2.40, so why does Yahoo show $2.77 ?
CHK should be UP, but the SP floats with oil more than it does with NG, even though the company makes 70% of its money from NG.
I hope to see NG rise above $3 this year, but who knows what it will do.
Maybe NG exports will help reach that goal?
Good Luck to All Longs !
That would be nice, but long time oil man Boone Pickens has been wrong about the price of oil and NG for almost 2 years now.
In late 2014 or early 2015 he said that oil would be at $60 by the summer of 2015 and $80 or $90 by the end of 2015.
He used to be the Pied Piper of NG use in transportation, but gave it up after it didn't catch on like he had hope it would.
We'll see what happens when it happens.
You maybe right, but using that credit line would be replacing older debt with newer debt.
Then they have no more credit, and I doubt they will be able to secure anymore.
They need to make a positive cash flow, and only higher NG prices will do that, IMO.
The consensus seems to be that NG prices will be low for quite awhile.
That's another thing that worried me.
He threw more money into a long time loser like RIG, and more into LNG and FCX, but not CHK.
Makes you wonder what he knows, or what doesn't know ?
I'm not sure, but I think there is a fee in order to have an account to post.
You should be able to read posts that are there.
I joined several years ago when it was free.
I assume that you think or hope that the SP will be at least double you call price by then?
They do that to me all of the time.
I don't know why I even use YahooFinance anymore !
There are other message boards where you don't have to deal with the trash posting trolls and spammers that frequent the boards on Yahoo.
LOL! I knew that.
Hmmmm, no replies, just crickets.
"and CHK debt issues were mostly resolved." ? ?
I read a downgrade over the weekend due to them selling more assets and trading shares to pay debt and doubts about them being able to pay 2017 debts.
I'm not bashing CHK, I'm just wondering how they will be able to avoind BK when so many others have had to go that route?
I think that I read that 60 O&G companies filed just last week?
I wish I had saved the link to that article.
Do you know how much of the short interest those funds held, and/or what % of shares shorted will be going forward?
I see all of these other O&G companies filing for BK protection, and wonder how long before CHK does it.
Since CHK make most of their money on NG, and that doesn't look like it will go up to a profitable price in the near term, I'm wondering how long CHK continues to sell assets, instead of filing for BK.
Are there any negatives for filing for BK?
It would wipe out a lot of debt and get rid of the common shareholders.
It would give CHK time and room to reorganize, and become profitable sooner due to lesser debts.
Please just give you honest opinions and pertinent information.
Nobody needs to tell me to sell if I am worried about the company filing for BK.
I could have done that at anytime on the way down from $29+
- P 2 -
Chesapeake got good news last month too, when its lenders unexpectedly affirmed its $4 billion credit facility. It has used second-lien debt to retire over $2 billion in net borrowings by purchasing its own bonds at a discount. It also has continued selling assets, most recently reaching a deal with Newfield Exploration(NFX) for $470 million.
Skepticism abounds, but Chesapeake's odds of survival keep inching higher. While time has run out, or will soon, for many producers, it is Chesapeake's ally and the company is working furiously to buy itself more of it.
Uttering the word bankruptcy around the oil patch these days is like shouting fire in a crowded theater.
While the mood has improved somewhat with the rebound in oil prices, the prognosis for many companies hasn't. Several are near the edge or have recently gone off of it. In the past two days, Linn Energy(LINE) and Penn Virginia (PVAH)both filed for chapter 11 bankruptcy protection.
That helped bring the high-yield-bond default rate among exploration-and-production companies over the past 12 months to 24%, according to Fitch Ratings. It foresees this rate at 30% to 35% by year-end.
One company that probably won't be part of that grim statistic is Chesapeake Energy(CHK). Back in February, its already depressed shares plunged after a report that it had hired restructuring advisers.
While Chesapeake is hardly healthy, its share price on Thursday was three times its February low.
So while it may have been read the last rites, it is hanging on. And, if it can outlast the slump in natural gas prices--getting back to around $3 per million British thermal units might be sufficient from $2.10 today--the upside is substantial. The company has massive undeveloped natural-gas acreage that could be quite valuable in the future.
Some institutional investors made just that bet according to an announcement Thursday. Chesapeake said these investors agreed to accept 28.1 million newly issued shares worth $123 million at Wednesday's closing price in exchange for parts of four debt issues. Those had a face value of $153 million.
This took some near-term pressure off Chesapeake. Although some of the retired debt had distant maturities, it could be sold back to the company at par fairly soon. That reduces that threat.
Given that equity is junior to debt in bankruptcy, the willingness of these investors to participate in the exchange reflects a bet that Chesapeake will avoid the fate of Linn and Penn.
- P 1 -