|Bid||0.7650 x 3000|
|Ask||0.7669 x 2900|
|Day's Range||0.7700 - 0.8150|
|52 Week Range||0.5500 - 3.5700|
|Beta (5Y Monthly)||N/A|
|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|
Chesapeake Energy Corp. got a notice earlier this week from the New York Stock Exchange for being out of compliance with a trading rule that requires listed companies to keep an average closing price of at least a dollar over 30 days, the energy company said late Friday. Chesapeake plans to regain compliance by working on its ongoing plans to cut expenses, sell assets, look into a reverse share split, and find more savings, Chesapeake said. It also intends to respond to the NYSE notice shortly, it said. In the meantime, the stock will trade under its existing ticker plus the suffix "BC" to indicate below compliance, Chesapeake said. Chesapeake shares fell 1.8% to 77 cents a share in the extended session Friday after ending the regular trading day up 0.8%. The natural-gas producer has struggled with falling natural-gas prices that have also hit Chevron Corp. this week. The company last week secured a $1.5 billion loan facility after spooking markets with a "going concern" warning in November.
Chesapeake Energy Corporation (NYSE:CHK) ("Chesapeake" or "the Company") announced that on December 10, 2019 it received written notice from the New York Stock Exchange ("NYSE") of its noncompliance with the standard set forth in Rule 802.01C of the NYSE Listed Company Manual that requires listed companies to maintain an average closing share price of at least $1.00 over a consecutive 30 trading-day period.
Chesapeake Energy (NYSE:CHK) stock has become intriguing again. Investors sold CHK off when management raised "going concern" issues. However, recent debt financing deals have bought it more time.Source: Casimiro PT / Shutterstock.com Such a deal may make a recovery in CHK stock possible. However, recent successes in the oil patch have supplied the market with too much oil and gas. Given this reduced pricing, I would not recommend a speculative play in Chesapeake Energy stock.In the last earnings report, the company called into question its future as "going concern." At that point, I sold my own speculative position, and it has fallen since that time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe problem for CHK stock is that the oil and gas boom has become a victim of its own success. The United States now produces so much oil and gas that these assets continue to lose value. * These 7 S&P 500 Stocks Will Deliver a Repeat Performance in the Next Decade Chevron (NYSE:CVX) just announced that they would take between $10 billion and $11 billion in write-downs in the fourth quarter as a result. One has to assume that ExxonMobil (NYSE:XOM), EOG Resources (NYSE:EOG), ConocoPhillips (NYSE:COP), and other oil majors could follow suit.The company holds $9.34 billion in long-term debt, a crushing burden for a company with only a $1.5 billion market cap. Falling oil and gas prices and asset write-downs have dimmed the prospects of reducing that debt. Moreover, the move to buy Wildhorse Resources to sell more oil may have backfired as oil prices have also failed to gain traction.That said, the company has again made CHK stock alluring with the latest debt deals. One deal comes in the form of a $1.5 billion, 4.5-year loan facility that retired an existing revolving credit facility worth about $900 million.Under a separate debt agreement, it will issue an additional $1.5 billion in bonds. These will come due in 2025 and carry an 11.5% coupon. They will also finance the retirement of some debts at 62 cents and 70 cents on the dollar.While this appears strange, some of the bonds traded below 50 cents on the dollar, as Dana Blankenhorn pointed out. Hence, these bondholders still benefit. Moreover, these deals buy Chesapeake more time to clean up its balance sheet. All of this has helped take the CHK stock price back up to around 75 cents per share. Chesapeake Energy Stock Has Become a GambleSome stock market detractors refer to investing in equities as "gambling." In most cases, I object to that view. However, that viewpoint may describe CHK stock accurately. I say this because Josh Enomoto's football analogy describes Chesapeake's situation accurately. Not only must they execute a fourth-and-long play flawlessly, factors which the company does not control must also go right.To be sure, a lot could go wrong for Chesapeake Energy stock. The previously-mentioned asset write-downs do not bode well for the industry. Moreover, the U.S.-China trade dispute makes prospects for selling in China tenuous. The falling cost of renewables could also further dampen the demand for fossil fuels. That push for renewables could accelerate further if a Democrat wins the White House in 2020.Investors who feel they can prevail amid the above conditions may choose to buy. A 100% loss of one's investment is a real possibility. However, if Chesapeake's management has run the right play, and some factors that they do not control go right, the returns on CHK stock could run several multiples above 100%. Still, with the risks involved, this is not a move that I encourage. Concluding Thoughts on Chesapeake Energy StockCHK stock has become a gamble with increasingly longer odds. Falling energy prices and statements from management have cast doubts about the future of Chesapeake.The company inspired some optimism with new debt financing deals. However, conditions continue to worsen as energy prices fail to gain traction. Moreover, geopolitical uncertainties and the increased viability of so-called "clean" energy solutions could add to the revenue pressure.If the company manages to clean up its balance sheet, CHK stock will rise exponentially. However, failure could lead to bankruptcy, and external market conditions continue to bode poorly for the company. Given the worsening market environment, I would not recommend a speculative position here.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 10 Worst Dividend Stocks of the Decade * 7 Game-Changing Tech Stocks to Buy Now * 5 Chinese Stocks to Buy for the Big 2020 Rebound The post Even After Its Latest Moves, Chesapeake Energy Stock Is Still Too Risky appeared first on InvestorPlace.
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to join the natural gas land rush in the Appalachian shale region of the US, its then vice-chairman lauded the $4.3bn deal as a “compelling investment”, citing a “high-quality resource” with “strong growth potential”. The oil major on Tuesday wrote down more than $10bn of assets, more than half from gas resources in the Appalachian states of Pennsylvania, West Virginia and Ohio. Chevron has nearly 900,000 net acres across the region’s Marcellus and Utica shale fields; its writedown highlights the stress spreading beneath the booming region, less famous but no less consequential than the Permian Basin of Texas and New Mexico.
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) 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.
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.
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 email@example.comTo contact the editors responsible for this story: Rick Green at firstname.lastname@example.org, 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.