CHK - Chesapeake Energy Corporation

NYSE - NYSE Delayed Price. Currency in USD
+0.0104 (+1.51%)
At close: 4:00PM EST
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Previous Close0.6900
Bid0.7050 x 3000
Ask0.7060 x 2200
Day's Range0.6850 - 0.7145
52 Week Range0.6400 - 3.5700
Avg. Volume70,524,218
Market Cap1.369B
Beta (3Y Monthly)2.46
PE Ratio (TTM)N/A
Earnings DateNov 5, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend Date2015-04-13
1y Target Est1.61
  • Chesapeake stock falls to lowest price in 25 years as ‘going concern’ warning weighs

    Chesapeake stock falls to lowest price in 25 years as ‘going concern’ warning weighs

    Going-concern warning hits Chesapeake Energy stock, bonds and shares fall to their lowest in a quarter century.

  • Cowboys owner Jerry Jones has a long-term game plan for Haynesville gas

    Cowboys owner Jerry Jones has a long-term game plan for Haynesville gas

    Reuters on Wednesday reported that Comstock Resources is in talks to buy Chesapeake Energy Corp's Haynesville shale assets in Louisiana. A deal would come just months after Comstock paid $1.1 billion to buy privately held Covey Park Energy to become the largest operator in the region.

  • Bloomberg

    This-and-Thats About Boeing, Chesapeake and Christmas Music

    (Bloomberg Opinion) -- Greetings, readers. In the spirit of some of my fellow Bloomberg Opinion columnists (with last names like Bernstein, Levine, and Sutherland) I’m going to write an occasional compilation of short items about topics I care about. Mine will post on Fridays and this is the first installment.I Remember AubreyThe unsurprising recent news that Chesapeake Energy Corp. might not survive as a “going concern” if gas prices don’t improve got me thinking about its late, flamboyant founder, Aubrey McClendon. McClendon was the original shale cowboy; Forbes once called him “America’s most reckless billionaire.” Indeed, who can forget the time he sold his own company a collection of historical maps for $12.1 million? (He was later forced to buy them back as part of legal settlement.) My colleague Liam Denning and I were recently recalling the incident and he emailed me Chesapeake’s 2009 proxy. It contained the company’s explanation for the purchase:These maps have been displayed throughout the Company’s headquarters for a number of years, complementing the interior design features of our campus buildings…Our employees and visitors appreciate the maps’ depiction of the early years of the nation’s energy industry…In addition, the collection connects to our Company’s everyday use of mapping in our business of exploring for and developing natural gas and oil.As Liam told me: “The rationale for buying the art is a work of art in itself”….Maxed OutAnother week, another brutal takedown of the Boeing Corp., this time in the New Yorker. Titled “The Case Against Boeing,” the article marks the 1996 merger of Boeing and McDonnell Douglas as the moment “when Boeing went from being led by engineers to being led by business executives driven by stock performance.” The author, Alec MacGillis,(2) recounts an anecdote told to him by a union executive named Stan Sorscher, who was trying to explain to a stock analyst in Seattle that “bottom-line business models did not apply to building airplanes.”According to Sorscher, the analyst replied, “You think you’re different. This business model works for everyone. It works for ladies’ garments, for running shoes, for hard drives, for integrated circuits, and it will work for you.”Boeing's well-documented cost cutting in building the 737 Max would certainly suggest that Sorscher was right – and that the desire to “maximize shareholder value” was at the root of what went wrong. (Flawed flight-control software made the 737 Max responsible for two fatal crashes.) If the Business Roundtable’s recent attempt to reduce the primacy of the shareholder is to mean anything, it has to mean that companies like Boeing will stop looking at the share price when it’s time to build a new airplane….Ka-chingI heard my first rendition of “The Christmas Song” this week; I’ll no doubt hear it 4,000 more times before we get to December 25. It’s said to be the most-performed Christmas song ever. Every year, after the first few hundred times, I always have the same question: How much does that one song generate for the estate of Mel Tormé, the great jazz singer who wrote it in 1945? It’s gotta be millions. Various (and possibly very unreliable!) websites speculate that $16 million to $19 million has flowed to Torme’s estate, but who knows…Crony CapitalismFor four years, the Republican Senate crippled the Export-Import Bank of the United States by refusing to confirm nominees for its board and its chairman. It was an ideological stance: They claimed that the bank, a federal agency which guarantees loans to boost exports, was practicing “crony capitalism,” favoring big companies over small businesses, and putting taxpayers at risk if the loans defaulted. U.S. exporters, they said, could get along just fine without it.But in May, the Senate finally confirmed President Donald Trump’s choice to be chairman, Kimberly Reed, as well as new board members. And guess what? As far as I can tell, the Ex-Im Bank is doing exactly the same thing in this administration as it did in previous administrations. In September, for instance, it approved a $5 billion loan — not a guarantee, mind you, but an actual loan — to finance a liquified natural gas project. The taxpayers are definitely at risk if this deal goes bust. And the main contractor for the Mozambique project is not some small business but a major oil company, Total S.A.I happen to be a big believer in the Ex-Im Bank. I think it helps create jobs in the U.S. To my mind, this $5 billion deal is a very good thing. Still, it’s hard not to be at least a little cynical about how pointless the Republicans “ideological” opposition turned out to be….Bye ByeThis was fun. Let’s do it again next week, okay?(1) MacGillis is an investigative reporter with the nonprofit news site, ProPublica. The article is a collaboration between the New Yorker and ProPublica.To contact the author of this story: Joe Nocera at jnocera3@bloomberg.netTo contact the editor responsible for this story: Timothy L. O'Brien at tobrien46@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Joe Nocera is a Bloomberg Opinion columnist covering business. He has written business columns for Esquire, GQ and the New York Times, and is the former editorial director of Fortune. His latest project is the Bloomberg-Wondery podcast "The Shrink Next Door."For more articles like this, please visit us at©2019 Bloomberg L.P.

  • EnLink's 20% Yield Is Everything Wrong With America's Pipelines

    EnLink's 20% Yield Is Everything Wrong With America's Pipelines

    (Bloomberg Opinion) -- When a stock goes into free fall, one hope is that some acquirer out there will catch it. Sometimes, though, suitors come with their own complications. That brings us to EnLink Midstream LLC.EnLink operates gathering and processing pipelines and other oil and gas infrastructure across several onshore U.S. basins. In the summer of 2018, Devon Energy Corp., an exploration and production company, sold its stakes in various EnLink entities to Global Infrastructure Partners for just over $3.1 billion. After a subsequent simplification of EnLink, GIP owns 46% of the common units, now worth $1.2 billion.EnLink has been undone by weaker commodity prices. Earlier this month, Devon announced it had dropped the number of rigs operating in one of Oklahoma’s shale basins to precisely zero (how’s that for a coda to last year’s deal?). This confirmed a trend evident already in permitting and drilling data for the Anadarko basin, where just four companies account for the majority of activity; and, crucially, they have operations in other basins that are more competitive in terms of breakeven costs.The distribution yield on EnLink’s stock now scrapes 20% — on a par with the current yield on long-dated bonds of Chesapeake Energy Corp., which just issued a going-concern notice. There’s being paid to wait, as they say, and then there’s being paid to wait in that trash compactor from Star Wars.EnLink’s cash flow math is tight. Consensus forecasts — which have now had time to digest cost savings pledged on the latest earnings call — put Ebitda at $1.1 billion in 2020. Take off around $500-$550 million for cash interest and (much-reduced) capital expenditure, and that leaves about $550-$600 million versus current distributions of about $550 million. With Ebitda forecast to grow at just 1% a year through 2022, that tight squeeze won’t ease up. Wells Fargo & Co.’s analysts estimated in a recent report that, absent a change in distribution policy, current leverage of 4.2 times adjusted Ebitda could reach almost 6 times by 2025. By any rational measure, the distribution should be cut.The complicating issue is that EnLink’s leverage is compounded by more leverage at the GIP level in the form of a $1 billion term loan. Technically, it is separate from EnLink’s own finances. But as the company acknowledges in its own 10K filing, debt owed by an entity owning almost half the company plus its managing partner, and which is serviced by EnLink’s own distributions, is very much a risk factor. By my calculations, the loan requires roughly $80 million a year of EnLink distributions (GIP didn’t respond to requests for comment)(1). As of now, distributions amount to about $255 million. So, in theory, EnLink could slash its payout by about two-thirds and GIP could still service the loan.In practice, that would be a bitter pill to swallow. As it is, GIP’s common units in EnLink are now worth not much more than the value of the loan and way below the original investment. Cutting distributions would certainly help EnLink’s balance sheet; all else equal, a 67% cut would save enough cash to take leverage below 4 times adjusted Ebitda, in line with long-term targets. But this would almost certainly push the value of GIP’s stake even lower, at least in the near term. As Ethan Bellamy, analyst at Robert W. Baird & Co. Inc., put it to me:Does GIP leverage prevent EnLink from cutting the distribution and right sizing the ship? It wouldn’t be the first time we’ve seen parental leverage from a private equity sponsor lead to sub-optimal outcomes for the subsidiary public entity.On the other hand, if EnLink cuts and its price falls further, then GIP might be tempted to make an offer for the rest of the company in an effort to salvage things out of the public eye. Needless to say, a takeover premium on an even lower EnLink price would do very little to make up for the losses suffered to date. We are seeing this play out with Blackstone Group Inc.’s offer for another midstream company, Tallgrass Energy LP, although the pain there is compounded by an agreement between the buyer and Tallgrass’s executives that effectively shields the latter from losses (see this).EnLink captures so much of what has gone wrong in America’s pipelines business. There’s the misalignment of interest between ordinary investors and the sponsors steering the company’s destiny. There’s the exposure to commodity markets from which, in theory, midstream companies were supposed to be insulated. Above all, there’s the overcapitalization of this sector, with obligations piled onto assets (largely to fund outsize payouts to controlling sponsors) that ultimately couldn’t generate the profits to service them (largely because too much stuff got built).Almost exactly four years ago, Kinder Morgan Inc. presaged the midstream reckoning to come by slashing its dividend. The stock has been listless for much of the period since then; even with the cut, chipping away at debts in a post-boom environment is a laborious process. As this decade of nominal success for America’s shale boom draws to a close, EnLink’s predicament shows the hangover remains very much a work in progress.(1) This assumes the full $1 billion remains outstanding. Interest is charged at Libor plus 4.25%, equating to 6.15%, or about $62 million. A debt-service covenant ratio of 1.1 times takes this to $68 million. Mandatory annual amortization of 1% of the loan plus assumed G&A costs results in an estimated minimum requirement of about $80 million to service the debt. Details derived from Moody's Corp.'s initial rating report from July 2018.To contact the author of this story: Liam Denning at ldenning1@bloomberg.netTo contact the editor responsible for this story: Mark Gongloff at mgongloff1@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at©2019 Bloomberg L.P.


    Grave Dancing With Sam Zell and Jerry Jones as My Chesapeake Investment Gains

    The Grave Dancer is buying oil production assets, so we may finally have reached a bottom in the valuation of energy companies.


    Real Estate Tycoon Buys Up Oil Assets At Rock Bottom Prices

    Real estate mogul Sam Zell is buying up distressed oil assets on the cheap as U.S. drillers are letting go of acreage to pay off mountains of debt

  • Bloomberg

    Billionaires Circle Distressed Assets in U.S. Oil and Gas Patch

    (Bloomberg) -- Billionaires are circling the distressed U.S. oil and gas patch, looking to pick up assets on the cheap at a time when the state of the industry is scaring off other investors.Sam Zell has teamed up with Tom Barrack Jr. to buy oil assets in California, Colorado and Texas at fire-sale prices from companies trying to get ahead of a coming credit crunch. Dallas Cowboys owner Jerry Jones said his Comstock Resources Inc. is in talks to acquire natural gas assets in Louisiana from struggling Chesapeake Energy Corp.“I compared it recently to the real estate industry in the early 1990s, where you had empty buildings all over the place, and nobody had cash to play,” Zell said in an interview on Bloomberg TV Thursday. “That’s very much what we’re seeing today.“Thanks to the shale revolution, the U.S. has become the world’s biggest oil producer. The investors behind that growth, however, have little to show for it. After years of churning through cash with paltry shareholder returns, independent oil and gas drillers are down more than 40% since 2014. Lenders are becoming more discerning after easy money enabled much of the original boom.Oil and gas prices, meanwhile, remain depressed.That’s fueling a slowdown. The number of active drilling rigs in the U.S. has declined, and some of the biggest independent producers are lowering growth plans. Chesapeake Energy Corp., once the second-biggest U.S. producer of natural gas, warned investors last week that it may not be viable as a “going concern” if low oil and gas prices persist.Here’s SamEnter the billionaires.“What we’re seeing are situations where companies are taking steps in anticipation of problems rather than responding to problems,” said Zell, 78.He and Barrack teamed up in September to create Alpine Energy Capital LLC, a rebranded Colony HB2 Energy, which was formed in 2018 and recently closed a $320 million investment with California Resources Corp.“The seller in that was a big company -- not in trouble but not terribly liquid, and therefore looking for ways to, in effect, get somebody else to put up the money to keep the game going,” Zell said.A sale of Chesapeake’s Louisiana assets has been pegged as one of the few remaining options for a company that has become a poster child for the promise and peril of the shale industry.Jones, 77, who owns 73% of Comstock, said through his assistant that a deal could be valued at more than $1 billion. That would give Chesapeake a cash infusion at a time when all eyes are on the company’s ability to pay its debts.That cash-flush opportunists like Zell, who’s been called “the grave dancer” for his ability to buy at the bottom of markets, see value in assets belonging to an industry that’s in distressed-sale mode could signal that the bottom is here -- or, at least, close.Real EstateZell can call the top of markets, too. Many people said that’s what he did with the U.S. commercial real estate market in 2007, when he unloaded a portfolio of office buildings to Blackstone Group Inc. At the time, he denied that was the case.It remains to be seen, of course, if oil and gas prices have hit bottom. Forecasts for next year don’t paint a pretty picture, but some analysts are pointing to a slowdown in U.S. production growth as reason to believe prices will pick up at the end of 2020 and into 2021.Unlike Jones, Zell said he’s staying away from gas for now.“The oil situation is in much better shape,” Zell said. “And the amount of capital is disappearing.”\--With assistance from Alix Steel and Sophie Alexander.To contact the reporter on this story: Rachel Adams-Heard in Houston at radamsheard@bloomberg.netTo contact the editors responsible for this story: Simon Casey at, Bob IvryFor more articles like this, please visit us at©2019 Bloomberg L.P.


    Oil Prices Are Steady. Why Are Risky Energy Companies Unpopular as Ever?

    The riskiest oil and gas companies are as unpopular as ever, fund managers say. Third-quarter earnings were a critical time for energy companies’ financial performances, and investors found some of them lacking. While the results weren’t bad across the board, would-be buyers were already worn out by the series of defaults and bankruptcies in the sector that occurred in 2015 and 2016.


    Top U.S. Gas Producer Looks To Ditch Major Shale Assets

    Shale icon Chesapeake is reportedly in talks with Comstock Resources about selling its Haynesville shale assets which could be worth more than 1 billion dollars


    Chesapeake Energy Might Survive Next Year After All, Morgan Stanley Says. It Downgraded the Stock Anyway.

    While the bank cut its share-price target by $1, its new target of $1.25 was still about 87% higher than Tuesday’s closing price of 67 cents per share—the stock’s lowest price in more than 25 years.

  • Amid Changes, Continue to Treat BP Stock as a Dividend Play

    Amid Changes, Continue to Treat BP Stock as a Dividend Play

    BP (NYSE:BP) stock remains steady as the company transitions to a new CEO. The problem is that has remained too steady.Source: JuliusKielaitis / The stock has seen little movement in the nine years Bob Dudley has served as CEO. Mr. Dudley took over in the midst of the Deepwater Horizon oil spill that devastated both the stock and the company dividend. * 7 Tech Stocks to Buy for the Rest of 2019 As leadership transitions to incoming CEO Bernard Looney in February, investors may credit Mr. Dudley with saving the company. However, stockholders have seen almost no profits in that time other than the dividend payments. Now, as new leadership takes over and as BP finally escapes the liabilities of the oil spill, many wonder if they can finally look forward to gains in BP PLC stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Oil Spill Turned BP Into a Dividend StockFor the last few years, BP stock has generated little excitement and considerable dividends. The company paid $3.36 per share in yearly dividends before the oil spill. At the current $2.46 per share in annual payouts, it still has not caught up to that level. However, it has risen steadily since management cut the payout.The company's dividend yield currently stands at an impressive 6.2%. Ian Bezek also makes a great point that shareholders do not pay foreign taxes on dividends from British companies. This is a bonus to holding shares in the company formerly known as British Petroleum.The problem involves a seemingly immovable stock price. BP traded at $38 per share when Bob Dudley took over as CEO in 2010. As Mr. Dudley prepares to step down, the equity trades at around $39.50 as of the time of this writing. For this reason, investors should probably continue to view BP stock primarily as an income play. Here's why. The Case For and Against BP StockNew leadership and the prospects for higher demand beg the question of whether investors need to buy BP stock for gains. In that area, I do not feel so optimistic.Admittedly, BP stock bulls have a reasonable argument. Although profits will fall this year, analysts forecast average annual earnings growth of 31.5% per year over the next five years. If this comes to pass, BP stock will again become a growth play. Moreover, countries such as China and India have an ever-increasing need for oil. The need should increase further once a U.S.-China trade deal becomes a reality.However, investors also have good reason to mistrust such a rosy forecast. Companies such as ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX), like BP, have seen profits fall over the last year. So bad is the problem that Chesapeake Energy (NYSE:CHK) now questions its ability to stay in business.West Texas Intermediate crude currently trades at about $57 per share. While most would not consider this "low," oil prices have struggled to gain traction in recent years as production levels in the Permian Basin have kept prices in check.The oil discovery in Iran will probably not help matters. The Iranian government claims it has discovered 53 billion additional barrels of oil. Despite sanctions, this likely helps to keep a lid on prices. When one figures-in the increasing importance of alternative energy, I see little reason to believe demand will rise enough to take the price of BP stock with it. The Bottom Line on BP PLC StockAmid a change in leadership, investors should continue to look at BP stock as an income play. BP should remain a good buy for dividend investors. The $3.05 per share in predicted profits will cover the $2.46 per share in dividends. The question is whether the equity can offer more.BP stock has seen little net price growth in nine years. Moreover, output continues to stay ahead of forecasted demand growth, indicating prices will fall. Despite this, analysts continue to hold to optimistic forecasts of long-term profit growth.Considering these conditions, I recommend BP stock only as a dividend play. I see the prospects for stock gains as mixed, but if they occur, see it as a bonus.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 * 7 Tech Stocks to Buy for the Rest of 2019 * 7 Biotech Stocks to Buy With Plenty of Power in the Pipeline * 5 Stocks to Buy That Are Set for Monster Growth in 2020 The post Amid Changes, Continue to Treat BP Stock as a Dividend Play appeared first on InvestorPlace.

  • Chesapeake Energy stock rallies 8% as Morgan Stanley says it can manage debt

    Chesapeake Energy stock rallies 8% as Morgan Stanley says it can manage debt

    Chesapeake Energy stock rallies Wednesday, vying to break a six-session losing streak, as some on Wall Street think the natural-gas producer will ‘manage’ potential breaches in its debt obligations.

  • MarketWatch

    Crestwood's stock rallies on back of Chesapeake Energy's bounce, as shares are highly correlated

    Shares of Crestwood Equity Partners L.P. rallied 1.5% in morning trade Wednesday, on track to snap a six-session losing streak, as a bounce in Chesapeake Energy Corp.'s stock helped provide support. Crestwood's stock had plummeted 14% over the past six sessions to close Tuesday at an 8-month low. Stifel Nicolaus analyst Selman Akyol wrote in a note to clients earlier this week that the recent weakness in Crestwood shares was likely in large part due to concerns over Chesapeake Energy, since the oil and natural gas company is a customer of Crestwood, a midstream infrastructure company, in the Powder River Basin. Chesapeake's stock bounced 7.5% Wednesday, after plummeting 57% over the previous six sessions on the back of a "going concern" warning. Crestwood and Chesapeake shares have a correlation coefficient of 0.77 over the past three months, where a correlation of 1.00 is a perfect match. Over the same time, the correlation of Chesapeake's stock and the SPDR Energy Select Sector ETF is 0.23, continuous crude oil futures is 0.28 and the S&P 500 is -0.29.

  • Chesapeake Down 57% Since Q3 Earnings, Hits 25-Year Low

    Chesapeake Down 57% Since Q3 Earnings, Hits 25-Year Low

    Chesapeake Energy's (CHK) quarterly results are affected by lower natural gas production volumes, decline in realized commodity prices and higher average production expenses.

  • Exclusive: Comstock in talks to buy Chesapeake's Haynesville assets - sources

    Exclusive: Comstock in talks to buy Chesapeake's Haynesville assets - sources

    The people, who declined to be identified because the talks are confidential, said what had been agreed so far could still be subject to change and there was no guarantee the talks would conclude successfully. Comstock and Chesapeake so far have not responded to requests for comment. Chesapeake shares were up 8%, while Comstock shares were up 3.3% in morning trading.

  • Bloomberg

    Chesapeake Says Top Investor NGP Distributed Shares to Partners

    (Bloomberg) -- Chesapeake Energy Corp., the U.S. natural gas producer that’s struggling under the burden of a high debt-load and low prices, said its second-biggest investor distributed its stake to its limited partners.NGP Energy Capital Management LLC “made an in kind pro rata distribution of the shares” to partners of its funds, Oklahoma City-based Chesapeake said in a statement late Tuesday. The statement made no further clarification, and calls and messages to Chesapeake and NGP after normal business hours weren’t immediately returned.NGP held a 16% stake with a market value of $208.2 million. The private equity firm became a major shareholder after Chesapeake bought WildHorse Resource Development for $1.86 billion this year.Chesapeake’s shares have tumbled 68% so far this year. They plunged to less than $1 last week after the company warned it may not be a viable “going concern” if low oil and gas prices persist. The company, once worth more than $30 billion, is now valued at about $1.3 billion. Its stock fell again Tuesday, dropping 17%.Its current capital and operating program, along with a planned 30% reduction in capital expenditures in 2020, will strengthen the financial position of the company for the long term, Chesapeake said Tuesday.“We have substantial liquidity with no significant near-term maturities,” Chief Executive Officer Doug Lawler said in the statement.\--With assistance from Rachel Adams-Heard.To contact the reporter on this story: Carlos Caminada in Calgary at ccaminada1@bloomberg.netTo contact the editors responsible for this story: Simon Casey at, Joe CarrollFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • MarketWatch

    Chesapeake Energy says top investor distributed shares, stock rallies in late trading

    Chesapeake Energy Corp. explained a potential reason for the latest big drop for its beleaguered stock late Tuesday, sending shares higher in late trading. In a news release, the company announced that NGP Energy Capital Management LLC, distributed its 310.8 million shares to the partners of investment funds that NGP manages before the market opened Tuesday. According to FactSet, the 310.8 million shares is the largest stake held in the company at 15.9%, though it lists the owner by a slightly different name, Natural Gas Partners LLC. "Chesapeake continues to strongly believe our current capital and operating program, coupled with the planned 30% reduction in capital expenditures in 2020, will strengthen the financial position of the company for the long term," Chief Executive Doug Lawler said in Tuesday's announcement. Chesapeake shares fell to their lowest prices in more than 25 years on Tuesday, continuing a losing streak that has destroyed its valuation. In late trading, Chesapeake shares gained 7.3% after the announcement.

  • PR Newswire

    Chesapeake Energy Comments On Market Volatility

    OKLAHOMA CITY , Nov. 12, 2019 /PRNewswire/ --On November 12, 2019 , representatives of NGP Energy Capital Management, L.L.C. ("NGP"), the beneficial owner of 310,812,722 shares of common stock ...


    Chesapeake Stock Fell to Lowest Price in 25 Years

    (CHK) shares took another dive Tuesday, pushing them well below $1 to hit their lowest price in more than 25 years as the natural-gas producer’s going-concern warning continued to reverberate in the equity markets and beyond. The natural-gas producer last week rang the alarm in its quarterly filing with regulators and reported a quarterly loss that was wider than Wall Street expected. ‘Too big to fail’ remains the prevailing view on Chesapeake,” said Paul Sankey, an analyst with Mizuho.

  • South Texas Drilling Permit Roundup: Chesapeake tops well permit list coming off tough week
    American City Business Journals

    South Texas Drilling Permit Roundup: Chesapeake tops well permit list coming off tough week

    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.

  • MarketWatch

    Crestwood Equity's stock falls again on fears of fallout from Chesapeake Energy's 'going concern' warning

    Shares of Crestwood Equity Partners L.P. dropped 1.7% toward an 8-month low in morning trading Monday, amid concerns over the energy midstream infrastructure company's exposure to Chesapeake Energy Corp. , which gave a "going concern" warning last week. Chesapeake is a customer of Crestwood in the Powder River Basin (PRB). The stock was headed for a fifth-straight loss, and has shed 14% during that stretch. Analyst Selman Akyol said the recent selloff in Crestwood shares have created an "attractive entry point" for investors, as Crestwood had already acknowledged that their 2020 outlook already assumed a lower rig count in the PRB by Chesapeake. While PRB producers have yet to finalize their drilling plans, Akyol believes "there is likely more upside to [Crestwood's] PRB forecast than downside." Crestwood shares have rallied 12.5% year to date, while Chesapeake's stock has plunged 58.4% and the S&P 500 has advanced 23.0%.

  • Frack-Sand Supplier Tumbles After ‘Going Concern’ Warning

    Frack-Sand Supplier Tumbles After ‘Going Concern’ Warning

    (Bloomberg) -- Carbo Ceramics Inc. plunged 47% after warning investors it may fail as a going concern in part because its largest frack-sand customer halted purchases.The slump on Monday was the fracking sand provider’s worst since its 1996 debut as a public company. The Houston-based company issued the warning in a statement after equity markets closed on Nov. 8.Carbo’s biggest sand client notified the company after the end of the third quarter that it would discontinue purchases, according to the statement. The company also is bracing for a weakening in the frack-sand market overall going into 2020. Shale gas driller Chesapeake Energy Corp. last week warned it may go under as a result of low energy prices.“There is an elevated risk associated with the company meeting its existing financial forecast and the company may ultimately conclude it is unable to continue as a going concern in a future period,” the company said in the statement.The oil-industry’s biggest hired hands have been warning that demand for crews and equipment used to frack oil and natural gas wells will continue to drop. Carbo has lost more than $3 billion in market value since the worst crude crash in a generation began five years ago.Carbo was down 45% to 85 cents at 10:35 a.m. in New York trading.To contact the reporter on this story: David Wethe in Houston at dwethe@bloomberg.netTo contact the editors responsible for this story: Simon Casey at, Joe Carroll, Christine BuurmaFor more articles like this, please visit us at©2019 Bloomberg L.P.

  • MarketWatch

    Chesapeake Energy's stock keeps sinking, heads for 5th-straight loss after 'going concern' warning

    Shares of Chesapeake Energy Corp. sank 2.9% toward another 20-year low in morning trading Monday, as part of the continued fallout from the "going concern" warning the oil and natural gas company stated in its quarterly filing last week. The stock was headed for a fifth-straight loss, and has plunged 44% over that time. With over 17 million shares traded, the stock is the most actively traded on major U.S. exchanges. The stock has now shed 58% year to date, while the SPDR Energy Select Sector ETF has gained 5.2% and the S&P 500 has climbed 23%.

  • Chesapeake Energy’s stock breaks the buck for the first time in 20 years

    Chesapeake Energy’s stock breaks the buck for the first time in 20 years

    Shares of Chesapeake Energy Corp. broke the buck Wednesday for the first time in over 20 years, as the oil and natural gas company’s “going concern” warning rattled Wall Street.