|Bid||0.7434 x 1200|
|Ask||0.7474 x 1400|
|Day's Range||0.7211 - 0.7854|
|52 Week Range||0.5500 - 3.5700|
|Beta (3Y Monthly)||2.46|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 25, 2020 - Mar 2, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.28|
The U.S. crude benchmark marked the highest settlement since September after the OPEC+ group announced cutting output by as much as 500,000 barrels per day from Jan 1 for three months.
Chesapeake Energy Corporation (NYSE: CHK) ("Chesapeake" or the "Company") announced today an amendment to its previously announced cash tender offer and consent solicitation (the "Tender Offer"), on behalf of its wholly owned subsidiaries Brazos Valley Longhorn, L.L.C. ("BVL") and Brazos Valley Longhorn Finance Corp. (together with BVL, the "Issuers"), for the 6.875% Senior Notes due 2025 (the "Notes") issued by the Issuers. The Tender Offer, which is subject to certain terms and conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated December 4, 2019 (the "Offer to Purchase"), has been amended to increase the tender offer consideration from $920.00 per $1,000 principal amount of Notes validly tendered and accepted for purchase in the Tender Offer to $950.00 per $1,000 principal amount of Notes validly tendered and accepted for purchase in the Tender Offer. As a result of this increase in the tender offer consideration, the New Total Consideration (defined below), in respect of Notes that are validly tendered at or prior to the Early Tender Date (defined below), is $1,000 per $1,000 principal amount of Notes validly tendered and accepted for purchase in the Tender Offer.
Chesapeake Energy Corporation (NYSE:CHK) announced today that it has successfully priced its proposed term loan. The term loan is being arranged by JPMorgan Chase Bank, N.A., Morgan Stanley Senior Funding, Inc., BofA Securities, Inc. and MUFG Union Bank, N.A. Chesapeake intends to use the net proceeds of the term loan, in part, to finance a previously announced tender offer and consent solicitation for unsecured notes issued by Brazos Valley Longhorn, L.L.C. ("Brazos Valley") and Brazos Valley Longhorn Finance Corp., each a wholly owned subsidiary of Chesapeake, and to fund the retirement of Brazos Valley's existing secured revolving credit facility. Chesapeake expects these transactions to improve its financial flexibility, as they will allow Brazos Valley and its subsidiaries to support Chesapeake's current and future debt.
In this article we are going to estimate the intrinsic value of Chesapeake Energy Corporation (NYSE:CHK) by projecting...
Chesapeake (CHK) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
Shares of Chesapeake Energy Corp. soar on heavy volume, after a series of debt financing moves that were announced help provide the struggling oil and natural gas company with additional financial flexibility.
Moody's Investors Service ("Moody's") assigned a B3 rating to Chesapeake Energy Corporation's (Chesapeake) proposed $1.5 billion first lien, "last out" term loan due 2024 and a Caa2 rating to the company's $1.5 billion proposed second lien note issuance due 2025. Proceeds from the term loan will be used to tender for notes issued by Chesapeake's wholly-owned unrestricted subsidiary, Brazos Valley Longhorn, L.L.C. (Brazos Valley) and repay borrowings under Brazos Valley's revolving credit facility.
The U.S. shale slowdown has left workers, companies and investors reeling, and the struggling drilling industry is not likely to turn around any time soon
(Bloomberg) -- Chesapeake Energy Corp.’s move to tame its $10 billion debt load alleviates immediate concerns about the oil and gas producer’s viability, yet fundamental issues threatening the company’s long-term outlook remain.The company’s shares and bonds gained Wednesday after it said lenders agreed to loosen some restrictions on its ability to incur debt, clearing up a prior “going concern” issue. Chesapeake also announced it was securing an additional $1.5 billion loan package from a group of banks, as well as plans to buy back $700 million of notes due in 2025 at discounted prices and swap other bonds into new securities.The company’s financing proposals could reduce leverage from its current level of around 4 times a measure of earnings and trim its overall debt load. Yet it doesn’t change the fundamental trajectory for the Oklahoma City-based energy producer, which has struggled to generate positive cash flow in recent years as weak oil and gas prices cast a pall over America’s shale boom, according to James Spicer at TD Securities.“I’m not sure that it solves their problems,” said Spicer, a high-yield analyst focused on the energy sector. “The underlying issue is generating free cash flow. The company is saying it can, but I think it’s very much a show-me story for investors.”Chesapeake didn’t respond to a request for comment.Falling PricesThe company’s bonds had extended losses since the driller warned last month that its financial survival was in doubt. Its fortunes rose during the boom years under Aubrey McClendon, when it became the second-largest U.S producer of natural gas. But Chesapeake was brought down by years of low prices as the market was flooded with new supply.The company needs oil prices around $60 a barrel and natural gas prices around $2.75 MMBtu in order to maintain production and generate free cash flow, Spencer Cutter, a Bloomberg Intelligence energy analyst, said in an interview. They were trading at around $58 a barrel and $2.38 MMBtu respectively on Wednesday.“This helps from a leverage standpoint, but it doesn’t change the fundamental issue that many oil and gas producers in North America face: the economics of fracking are questionable,” Cutter said.JPMorgan Chase & Co., Morgan Stanley, Bank of America Corp. and a unit of Mitsubishi UFJ Financial Group Inc. are arranging the new secured loan, the company said in statement Wednesday. The cash will be used to fund debt buybacks and to retire an existing revolving credit line. The plan still needs lenders to commit to the deal, negotiations of definitive terms and consent from existing creditors, Chesapeake said.In a separate statement, it offered a debt swap on five sets of notes at deeply discounted prices, with holders getting as little as 57 cents on the dollar. The exchange could involve as much as $2.34 billion of securities.Participating bondholders will get new secured debt in exchange for their unsecured bonds, as well as a coupon boost from between 7% and 8% to 11.5%. The securities will sit behind the new term loan in the capital structure, Cutter said.Chesapeake is also offering up to 97 cents on the dollar in cash for another set of senior notes due in 2025.Notably, the company is leaving its near-term bonds in place for now, suggesting that it may be confident about other methods for addressing those maturities, such as through an asset sale, Spicer said.Financial FlexibilityChesapeake creditors will now have access to the Brazos Valley assets --which it acquired through a merger with WildHorse Resource Development -- in the event of a restructuring, Cutter said. Previously, Brazos lenders and bondholders would have been repaid from those assets before Chesapeake creditors.“Chesapeake expects these transactions to improve its financial flexibility, as they will allow Brazos Valley and its subsidiaries to support Chesapeake’s current and future debt,” the company said in a statement.Chesapeake’s efforts to swap its debt are just the latest actions taken to shore up the business since McClendon’s 2016 death. In addition to selling assets, cutting jobs and trying to boost output, the company has undertaken a series of debt-for-equity swaps, the most recent in September.Its efforts to delay repaying debt are fairly similar to moves made by other distressed energy companies following the sector’s downturn in the middle of the decade, according to Cutter.“The vast majority of those companies ended up going bankrupt anyway,” he said.(Updates with analyst comments throughout)\--With assistance from Christopher DeReza and Shannon D. Harrington.To contact the reporter on this story: Allison McNeely in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Rick Green at email@example.com, Boris Korby, Claire BostonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Chesapeake Energy Corporation (NYSE:CHK) announced today that it has engaged JPMorgan Chase Bank, N.A., Morgan Stanley Bank, N.A., Bank of America, N.A. and MUFG Bank, N.A. to assist with the arrangement of a secured first lien last out 4.5-year term loan facility in the aggregate principal amount of up to $1.5 billion. Chesapeake intends to use the net proceeds of the loan to finance a tender offer and consent solicitation announced today for unsecured notes issued by Brazos Valley Longhorn, L.L.C. ("Brazos Valley") and Brazos Valley Longhorn Finance Corp., each a wholly owned subsidiary of Chesapeake, and to fund the retirement of Brazos Valley's existing secured revolving credit facility. Chesapeake expects these transactions to improve its financial flexibility, as they will allow Brazos Valley and its subsidiaries to support Chesapeake's current and future debt.
Chesapeake Energy Corporation (NYSE: CHK) ("Chesapeake") announced today that it has commenced a tender offer, on behalf of Brazos Valley Longhorn, L.L.C. ("BVL") and Brazos Valley Longhorn Finance Corp. (together with BVL, the "Issuers"), each wholly owned subsidiaries of Chesapeake (the "Tender Offer"), to purchase for cash any and all of the outstanding 6.875% Senior Notes due 2025 (the "Notes") issued by the Issuers. Prior to February 1, 2019, BVL was known as WildHorse Resource Development Corporation.
Chesapeake Energy Corporation (NYSE:CHK) (the "Company") today announced the commencement of private offers of up to $1,500,000,000 aggregate principal amount (the "Maximum Exchange Amount") of its new 11.5% Senior Secured Second Lien Notes due 2025 (the "Second Lien Notes") in exchange for certain outstanding senior unsecured notes (collectively, the "Existing Notes") issued by the Company, upon the terms and subject to the conditions set forth in the Company's confidential offering memorandum and the related letter of transmittal, each dated December 4, 2019. The Company may, subject to applicable law, increase the Maximum Exchange Amount without extending the Early Tender Date (as defined below) or reinstating withdrawal rights. The Company does not expect to increase the Maximum Exchange Amount to an amount greater than $2,340,000,000, if at all. The Exchange Offers are conditioned upon sufficient Existing Notes being tendered such that at least $1,500,000,000 aggregate principal amount of Second Lien Notes will be issued in the Exchange Offers (the "Minimum Second Lien Note Condition").
After a decade of U.S. shale oil & gas, it seems like almost every American has profited, except for the investors that have lost their shirt in the shale bust
Chesapeake Energy, one of America’s largest shale drillers, saw its share price plunge earlier this month when it warned investors that it may not be able to service its debt - but the company isn't dead yet
The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for a 67-county area of South Texas.
The number of North American shale bankruptcies have soared since September, and the investors that thought that the bust was over are now forced to re-think their strategy
A basic tenet of asset allocation is that different investors have different risk tolerances. A small portfolio owned by a 25-year-old single professional should not contain the same stocks as that of a couple in their 60's heading into retirement.Even within a portfolio, risks should vary. There's nothing wrong with allocating a small portion of one's investments to securities with higher risk and higher reward.For investors looking for some extra risk, these five lottery ticket stocks offer it in spades. Indeed, all five well could actually end up wiping out shareholders. Whether it's debt worries, a risky merger or an unproven business model, in each of these cases there are real risks to the company's equity value, if not its viability.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut all these stocks still have some value in the market -- because the potential rewards are enormous as well, for largely the same reasons. Debt is an anchor when a company is struggling; it provides leverage to the equity when that company turns around. Unproven business models can be proven. Turnarounds can drive enormous rewards for patient investors.To reiterate, these stocks are extremely risky. These are not stocks to buy with money an investor cannot afford to lose. Again, it's possible that every one of these companies will end up in bankruptcy with a stock price at zero. * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities But it's also possible that at least one of these names will provide enormous returns. For investors willing to take on and understand the risks, they are among the market's most intriguing "lottery ticket stocks." Lottery Ticket Stocks: Rite Aid (RAD)Source: J. Michael Jones / Shutterstock.com I've been a longtime bear toward pharmacy operator Rite Aid (NYSE:RAD). RAD stock has plunged since a planned acquisition by Walgreens Boots Alliance (NASDAQ:WBA) fell through. And bulls have argued that mismanagement under former CEO John Standley is a key reason why.But as I detailed in September, that simple argument ignores the very real pressures on the pharmacy industry at the moment. Insurers are driving pricing pressure throughout the healthcare industry. Generic drug savings aren't enough for margins to keep up. Front-end sales are struggling. RAD stock has plunged -- but shares of WBA and CVS Health (NYSE:CVS) have fallen as well. Those declines show real industry-wide problems.The largest reason RAD stock has fallen further than those larger rivals is that its huge debt load has pressured equity value.All that said, there has been some optimism of late. RAD stock now has nearly doubled from its lows. CVS has bounced 45%, and Walgreens reportedly is considering going private. If the industry really has a better outlook, RAD stock can soar.The same $3 billion-plus in debt that has pressured RAD stock on the way down can boost it on the way up. A market capitalization of just $530 million shows why. If the company can reduce that debt and the market assigns a higher value to the business as a whole, there's no reason the RAD stock price can't double or more from the current $10, and reach a market cap over $1 billion.After all, Walgreens was offering $180 per RAD share (adjusted for the stock's reverse split in April), a total consideration of $17 billion. And Rite Aid rose almost 700% from early 2013 to mid-2014, as debt fears receded. That history shows RAD stock can soar.But remember, too, that Rite Aid's 2027 bonds yield almost 16% to maturity. That's a yield that suggests debt investors still see a very real chance of bankruptcy in the next few years. Rite Aid stock now is a highly leveraged bet on its new CEO and a continued recovery for the pharmacy industry. It's a bet that can pay off big -- or leave stockholders with nothing. Chesapeake Energy (CHK)Source: Casimiro PT / Shutterstock.com I've called out Chesapeake Energy (NYSE:CHK) several times as a high-reward, high-risk bet on oil prices. With CHK stock trading at a 25-year low, that's still the case -- though the bet admittedly seems a bit tougher to make.The headline news from the company's recent earnings report was that Chesapeake disclosed a so-called "going concern" warning. That's a legal disclosure that warns investors the company may not be able to satisfy lenders at some point in the next 12 months. Chesapeake CFO Nick Dell'Osso said on the Q3 conference call that Chesapeake could fix the problem by getting a waiver of its debt covenants from lenders, and at least one Wall Street analyst agreed.But the risk here isn't necessarily that Chesapeake goes bankrupt in the next 12 months. It's that it goes bankrupt at some point if oil prices don't rise. As Will Ashworth noted this month, Chesapeake has been promising positive free cash flow for years now. It still hasn't delivered. Meanwhile, the debt load continues to hold above the $10 billion mark, and at some point lenders won't waive another covenant or refinance another bond. Those lenders will take over the company, and shareholders will get nothing.So what's the case for CHK at this point? It's a thin one. CHK stock basically is a call option on a huge jump in oil prices. If those prices rise, Chesapeake's cash flow skyrockets, and its debt worries ease. The equity value then soars above the current 58 cents per share. If prices don't rise, the odds are extremely high that at some point, if not necessarily 2020, shareholders are wiped out. * 7 Killer Stocks No One Knows About For big-time oil bulls, CHK stock is an intriguing, and very high-risk play. For other investors, it's a clear avoid. Gannett (GCI)Source: Shutterstock Gannett (NYSE:GCI) will be the name of the combined company after the USA Today owner was acquired by New Media in a deal that closed this week. And I highlighted what was still New Media stock earlier this month as an intriguing dividend stock under $10.But it's not a "safe" yield play, or anything close. Indeed, at this point, NEWM stock is a straight bet on the success of that merger.And there are huge potential rewards if that merger is the success New Media projects. The company is halving its dividend to help manage the debt used to acquire Gannett, but the stock still will yield nearly 12%. The combined company, under management projections, will generate enormous cash flow, helping it to quickly pay off that debt and drive stable, if not growing, earnings going forward. There's a real case that even at a multiple of 10x post-merger free cash flow, NEWM stock could rise from a current $6 to $20 or more relatively easily.The risks are obvious. Newspapers are dying. This is the biggest of New Media's acquisitions -- and that strategy has led the stock to an all-time low after it was spun off from Newcastle (now Drive Shack (NYSE:DS)) back in 2014. The same strategy, and the same CEO, led predecessor GateHouse Media into bankruptcy in 2013.NEWM stock is a bet on that CEO and on this potentially transformative merger. If it pays off, it's going to pay off big -- but the company's history highlights the very real risks. Soliton (SOLY)Source: antoniodiaz /ShutterStock.com Soliton (NASDAQ:SOLY) stock went absolutely crazy this spring. The catalyst was FDA approval of the company's tattoo removal device. SOLY stock rose 148% on May 28, and another 43% the following session.Since then, however, the stock has settled down quite a bit, dropping 61% from those brief euphoric highs. And here, there's an intriguing high-risk case. Energy-based aesthetics stocks have done well in recent years. ZELTIQ Aesthetics was acquired by Allergan (NYSE:AGN) for $2.5 billion. Hologic (NASDAQ:HOLX) bought Cynosure. Syneron Medical, despite years of disappointment, still went private at a premium.Only Cutera (NASDAQ:CUTR) remains public among the sector's major players. And it's valued at over $500 million despite a consistent inability to drive consistent profits.Given those peers, Soliton's $180 million market cap seems potentially reasonable. The company may well have a cutting-edge technology for tattoo removal, a market which obviously can and likely will grow for years. It's running a clinical trial for cellulite reduction as well, which would make it a player in that huge and growing industry.Obviously, there are risks here. Soliton still is raising funds, and may dilute shareholders further to do so in the future. The technology may not work. The market is crowded, and a poorly timed recession could shrink that market more just as Soliton is trying to break through. * 9 Tantalizing Dividend Stocks for 2020 But there's a real case behind the optimism that greeted SOLY stock this spring, If Soliton can become a legitimate player in the energy-based aesthetics industry, its market value will be much, much higher than the current $180 million. Aurora Cannabis (ACB)Source: Jarretera / Shutterstock.com It's probably too early to try and time the bottom in cannabis stocks like Aurora Cannabis (NYSE:ACB). Stocks in the sector continue to plunge, with a disastrous wave of earnings last week hardly doing anything to inspire confidence. ACB stock too fell after a disappointing fiscal-first-quarter report. Though, the sector did get some relief as Federal lawmakers made some steps toward legalization.However, it can get worse. I argued just this month that investors should avoid Aurora stock. The company's convertible debt now has to be paid in cash, which raises funding worries. Selling prices in Canada are collapsing. Aurora now has a far-flung manufacturing operation with significantly lower revenue potential.All that said, for investors willing to time the bottom at some point, Aurora probably is the play. Aurora's aggressive strategy long has made it likely that it would be either the biggest loser, or the biggest winner, in cannabis. The latter scenario still isn't completely impossible.If the Canadian market can get fixed, and/or other countries move toward national recreational legalization, sentiment toward pot stocks can improve. The broad case for stocks in the sector has been that, eventually, cannabis would be a huge, multi-national, regulated industry. That's still on the table.Aurora may have near-term funding worries, and it's likely there are going to be a number of bankruptcies across the sector in the coming years. But if Aurora Cannabis can avoid being a name on that list, the long-term rewards for investors buying at the bottom can be huge. The one issue right now, however, is that there's little evidence to suggest the bottom is in just yet.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Marijuana Penny Stocks That Have Ridiculous Possibilities * 7 High-Yield ETFs to Buy Now * 4 Dow Jones Industrial Average Stocks to Sell The post 5 Lottery Stocks With Huge Upside -- And a Real Chance of $0 appeared first on InvestorPlace.
U.S. shale may well have seen its profitability peak, with its third quarter earnings coming in as another huge failure for an industry that has struggled through a decade of unprofitability
Moody's Investors Service ("Moody's") downgraded Chesapeake Energy Corporation's (Chesapeake) Corporate Family Rating (CFR) to Caa1 from B2, its Probability of Default Rating (PDR) to Caa1-PD from B2-PD, and its senior unsecured notes ratings to Caa2 from B3. Concurrently, Moody's downgraded the CFR of Chesapeake's wholly-owned subsidiary Brazos Valley Longhorn, L.L.C. (Brazos Valley) to Caa1 from B2 and the senior unsecured notes rating of Brazos Valley's predecessor entity, WildHorse Resource Development Corporation to Caa2 from B3.