13.27 +0.26 (2.00%)
After hours: 6:08PM EDT
|Bid||12.95 x 3000|
|Ask||13.28 x 4000|
|Day's Range||12.82 - 13.49|
|52 Week Range||7.77 - 430.00|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Aug. 04, 2020 - Aug. 10, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||40.51|
(Bloomberg) -- The smallest shale oil drillers have endured their fair share of pain in this spring’s energy collapse and, with ailing stock prices, analysts are finding it even tougher to cover the group.Early Friday, energy researcher Heikkinen Energy Advisors and investment bank Tudor Pickering Holt & Co LLC, both based in Houston, discontinued coverage of Centennial Resource Development Inc., Callon Petroleum Co., and QEP Resources Inc.Heikkinen also suspended ratings on other drillers, including Chesapeake Energy Corp., Goodrich Petroleum Corp., Gulfport Energy Corp., Montage Resources Corp. and Oasis Petroleum Inc.Stocks with market caps below $300 million and share prices under $1 are “generally uninvestable for the majority of our client base due to their small size and low trading liquidity,” Heikkinen told clients in a note. Tudor Pickering cited a “reallocation of resources and an internal refocus of our coverage list.”Oil & gas-focused research firms and investment banks are “pulling in resources,” said Tyler Hardt, a Florida-based portfolio manager at Pelican Bay Capital Management. An easy place to cut is “smaller-cap energy names that a lot of people don’t have hope for.”Bankruptcies could occur before any potential mergers and acquisitions, Hardt added.Centennial was among the exploration and production outfits touted as a potential takeout target in the past by firms including SunTrust and Tudor.‘Non-Consideration’At least one portfolio manager isn’t looking too deeply into the discontinued ratings. “Looking at these cancellations might actually be a non-consideration as an investor,” according to Josh Young at Houston-based Bison Interests LLC. He sees little correlation between stock performance and recommendations, adding that hedge funds still care about potential M&A targets even amid the carnage in the energy industry.At the same time, Heikkinen isn’t completely abandoning ship. The firm intends to follow these companies by “maintaining relationships with management, updating models and providing production and financial estimates.”(Updates with additional suspended ratings at Heikkinen)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
If you own shares in Chesapeake Energy Corporation (NYSE:CHK) then it's worth thinking about how it contributes to the...
Bullish sentiment is slowly returning to oil markets as multiple OPEC members hint at deeper production cuts and global supply continues to go offline
The S&P 500 closed barely higher, eking out a nominal gain on Monday as investors weighed new spikes in coronavirus infections with expectations that an economy crippled by mandated shutdowns will soon be re-opened for business. Technology and healthcare shares provided the biggest lift to all three major U.S. stock indexes and led the tech-heavy Nasdaq to its sixth consecutive advance. The blue-chip Dow lost ground.
(Bloomberg) -- Chesapeake Energy Corp. discarded its full-year outlook, wrote down the value of $8.5 billion in assets and revived concerns one of the biggest U.S. natural gas suppliers is on the verge of financial collapse.The Oklahoma City driller hired strategic advisers and may seek Chapter 11 bankruptcy protection as Covid-19 lockdowns slashed energy demand and triggered a record quarterly loss, the company said Monday in a federal filing.Once a contender for the title of biggest American gas producer, the shale driller co-founded by the late Aubrey McClendon has been struggling for most of the past decade under a staggering debt load and the North American supply glut Chesapeake helped create.Chief Executive Officer Doug Lawler’s attempted pivot into crude production never gained traction. The company faces more than a half-billion dollars in debt maturities by the end of next year, and has been shut out of financial markets. The $8.3 billion first-quarter loss dwarfed any of the negative results posted during the 2014-2016 crash, and was the worst in company history.“We currently have no access to capital,” the company said in the filing. “Additionally, our customers and counterparties are experiencing uncertain economic conditions which may impact their ability to make payments to us.”Guidance WithdrawnChesapeake said it recorded $8.5 billion in first-quarter impairments as the value of its fields, a sand mine and other assets plunged along with commodity prices. The company’s proved reserves shrank by 37% during the quarter because Chesapeake no longer expects to be able to develop them any time soon.Chesapeake also withdrew its 2020 guidance issued in February, when it called for a 30% cut to spending while targeting free cash flow for the year.Chesapeake was already in a precarious position before the Covid-19 outbreak sent crude demand plummeting. At its height more than a decade ago, the producer was a $37.5 billion juggernaut commanded by McClendon, an outspoken advocate for the gas industry. But Chesapeake’s success at extracting the fuel from deeply buried rock contributed to a massive gas glut.The company first warned in November that it may not survive as a viable business. Shares fell 5.2% to $13.93 at 12:54 p.m. in New York.Curtailing SuppliesChesapeake said in the federal filing that by delaying and shutting in wells, the company is cutting oil output by 50% this month and by 37% in June. The company also cut 13% of its workforce in April.With plans to spend no more than $700 million for the rest of 2020, the company that has lately only garnered a quarter of its output from oil will focus primarily on its gas assets this year.(Updates with scope of quarterly loss in second, fourth paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Chesapeake Energy (NYSE: CHK) continues to knock at the door of bankruptcy. The financially troubled driller filed its quarterly report with the SEC today, which included a new "going concern" warning. The company also pulled its financial guidance and unveiled plans to prepay incentive compensation to management to keep them motivated in case it files for bankruptcy.
Chesapeake (CHK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
KlaymanToskes ("KT"), www.klaymantoskes.com, announced today that it is investigating the damages sustained during the Coronavirus ("COVID-19") pandemic by employees and investors who held large positions in Chesapeake Energy (NYSE:CHK) stock at full-service brokerage firms. Investment portfolios holding large positions can carry significant downside risks. The investigation focuses on full-service brokerage firms’ negligence and mismanagement of large positions that resulted in employees and investors suffering substantial losses.
Chesapeake Energy (NYSE: CHK) is one of the most popular stocks in the energy sector even though its share price has cratered over the past year. Shares of Chesapeake Energy have cratered 97% over the past year. First, oil and gas prices have tumbled because of a massive oversupply, which has eaten into Chesapeake's cash flow and weighed on the value of its assets.
Nearly every corner of the oil world has been affected, and billions of dollars in investor capital has already been destroyed. The oil patch is in a massive mess that could take a year or more to correct, and more companies are going to struggle badly and destroy lots more shareholder equity before it gets better. Five oil stocks in particular that investors should avoid are Occidental Petroleum (NYSE: OXY), Oasis Petroleum (NYSE: OAS), Halliburton Co (NYSE: HAL), Chesapeake Energy (NYSE: CHK), and Valaris plc (NYSE: VAL).
The Oklahoma City-based company, cofounded by late wildcatter and outspoken natural gas proponent Aubrey McClendon, has held discussions with creditors about a possible loan that would aid operations while it navigates bankruptcy proceedings, the sources said. The loan could total roughly $1 billion (803 million pounds), though its size remains in flux, one of the sources added. Such loans, referred to as debtor-in-possession financing, are key to companies seeking Chapter 11 bankruptcy protection because they help them sustain as much of their business as possible during court proceedings.
Zacks Market Edge Highlights: Chesapeake Energy, Comstock Resources, Schlumberger, Pioneer Natural Resources and EOG Resources
Academy Securities Head of Macro Strategy Peter Tchir joins Yahoo Finance’s Seana Smith to discuss the impact of oil's historic plunge on the markets.
Stocks tumble after crude oil trades negative for the first time ever. Yahoo Finance's Jared Blikre joins Jen Rogers to break down the day's price action, along with a Yahoo Finance Premium Investment Idea to short Orange S.A. (ORAN) for a potential 5 to 1 reward risk ratio.
OPIS Global Head of Energy Analysis Tom Kloza joins Yahoo Finance’s Seana Smith to break down the latest energy news, as U.S. oil futures trade negative for the first time in history.
Parsley Energy CEO Matt Gallagher joins Yahoo Finance’s Seana Smith to discuss the recent slide in oil prices amid OPEC+ deal.