Vishal Shah, an analyst at Deutsche Bank
“We continue to believe liquidity concerns are overdone,” Shah said in the note. “The execution of pending transactions along with refinancing of margin loan could act as a positive catalyst for shares.”
according the Rueters report, Bank of America Merrill Lynch said management was thwarting growth. “We do not forecast a bankruptcy outcome, but acknowledge there are equity sentiment, macro, financial and policy risk factors beyond management’s control,” the note said.
By Johanna Bennett
Posting a smaller-than expected third-quarter loss wasn’t enough to help Chesapeake Energy (CHK) shake off persistent worries about cash burn.
As Citigroup analyst Robert Morris writes:
CHK ended Q3 with a cash balance of ~$1.76bn vs. our ~$1.95bn forecast as the company incurred another drop in working capital ($158mm) as it further reduced activity…Although production topped Consensus expectations and costs are being sharply reduced, we believe there remains a focus on “cash burn” and CHK’s ability to execute accretive asset sales to reduce leverage, of which there was no mention in this morning’s release. Thus, we believe CHK’s shares should track in line with its large-cap E&P peers although short covering could spark a rally.
No rally today. Chesapeake gave up premarket gains, and went on to plunge 7% to a recent $7.06.
Chesapeake is among the large U.S. energy companies that have written down the value of their oil fields and slashed capital spending in the face of an rout in oil prices. The depressed market means it isn’t worth drilling on many of its properties.
Revenue for the third quarter fell 49% to $2.89 billion, missing the $3.02 billion expected by the Street
Earlier today, Chesapeake cut its 2015 capital spending budget for the second time this year, and warned that spending cuts could be in store for 2016.
Capital expenditures this year are now expected to range from $3.4 billion to $3.9 billion, compared to the previous $3.5 billion to $4 billion forecast.
Saudi Arabia is not our friend, they are our ally. They share the U.S. position of preventing a nuclear Iran by all means necessary.
"Will everyone start buying after the results dip, hoping the worst is in" ?
I don't know. The May 6th earnings the stock dropped 12% to $14.50 . It never really recovered so I don't think there was a lot of buying. Hopefully this time would be better
The planned sale of these small vessels, which are designed to operate in coastal waters, would begin to make good on President Obama’s promise to beef up the military capabilities of U.S. allies in the Middle East. The Gulf Cooperation Council–composed of Saudi Arabia, Bahrain, Qatar, Kuwait, Oman and the United Arab Emirates–agreed to support the Iran nuclear deal in August after U.S. officials sweetened the deal with offers of increased arms sales and assistance. In addition to the expected combat ship sale, the United States has been in talks with the GCC on other security guarantees and points of coordination.
Iran’s neighbors are concerned that the lifting of sanctions on the Islamic Republic would do little to impede Iran’s pursuit of nuclear weapons, while facilitating the modernization of its supply of conventional weapons. And as Gulf Arab states contend with threats from ISIS and sectarian violence spilling out from Syria, the Iran deal is only the cherry on top of a heap of reasons to buy up arms. Many American defense contractors are getting ready for a business boom as Arab countries spend record amounts on arms deals. Last year, Saudi Arabia spent a record $80 billion on weaponry–more than either Britain or France.
Congress now has an opportunity to block the sale.
The company has scheduled to release its 2015 third quarter operational update and financial results before market open on Wednesday, November 4, 2015 A conference call to discuss the results has been scheduled for the same day at 9:00 am EST.
YES, earnings will have an effect on the stock and it will also give a picture to the companies financial performance SA just did a article asking these important questions "Has the company’s cash flow situation improved?" Is Its oil and gas yield declining? If the company comes short and shows even lower realized prices, this could mean lower-than-expected earnings for the U.S. oil producer.? Analysts expect the company's loss per share will reach $0.14 in Q3 . Will they miss or beat ?
all these will effect the share price one way or another on Nov 3rd
Chesapeake Energy fined $2.1M for under reporting gas
DENVER (AP) —Chesapeake Energy Corp. has been fined $2.1 million for under reporting natural gas produced on Indian leases in Oklahoma.
The Department of Interior's Office of Natural Resources Revenue Office in Denver said Monday it issued the civil penalty against the Oklahoma City-based company for failing to comply with an October 2011 order requiring it to review the amounts reported for more than 100 leases. In a statement, the office said that Chesapeake said it complied with the order in 2012 but follow up testing found additional under reported volumes which were then corrected in 2013.
The 2011 order covered land owned by tribes and individual Native Americans. The fine covers misreported amounts produced on the individual leases only.
OCTOBER 7, 2015 BY NICK WADDELL 1 COMMENT
With worldwide markets down substantially heading into the fourth quarter of 2015, Mackie Research Capital analyst Russell Stanley says he has identified a healthcare play that will buck the trend.
In a comprehensive report from Mackie Research Capital dedicated to their analyst’s top picks for Q4, Stanley says Nobilis Health Corp. is his.
Nobilis, which owns and operates ambulatory surgical centers and surgical hospitals in parts of the United States, is a company with a track record of high organic growth, says Stanley. He also notes that Nobilis has a strong track record when it comes to M&A. He points to the company’s September 2014 acquisition of First Nobilis Hospital for $7.5 million in cash, as one example.
On September 23, Nobilis announced it had acquired a 60% stake and management control of the former Freedom Pain Hospital located in Scottsdale, Arizona for approximately $3.2-million.
The analyst says there are macro trends supporting the story as well.
“We view (Nobilis) as an undervalued play on increasing demand for surgical procedures flowing from an aging population and the prevalence of obesity,” says Stanley.
In the research update to clients this morning, Stanley reiterated his “Buy” rating and one year target price of $12.50 on Nobilis Health, implying a return of 72% at the time of publication.
I like CHK.
You just sound like a fool