How low will Chesapeake's stock price go

From just below $70 to under $20 in three months.

Views: 142

▶ Reply to This

Replies to This Discussion

Permalink Reply by TJ on October 10, 2008 at 11:13
Chesapeake Energy Corp. CHK (NYSE) Get E-Mail Alerts on This Stock

Data as of 10-10-2008 03:07 PM CT (USD)

Last Price Day Change Volume
16.52 1.19 (-6.72%) 117,344,731



Open Price Day Range 52-Wk Range
15.67 18.60 - 11.99 74.00 - 11.99



Mkt Cap (mil) Yield Avg Volume
9,568 1.73% 31,247,734



P/E P/S P/CF
NA 1.58 1.49
Stock Chart more


http://quote.morningstar.com/Quote/Quote.aspx?ticker=CHK
Permalink Reply by Papa on October 10, 2008 at 12:18
Well, it was fun while it lasted. What about all those folks who were going to sue CHK because they didn't get $30,000 per acre like their neighbors did? Lease prices are going to drop like a rock. Like everything else they're worth different amounts at different times.
Permalink Reply by Snake Stewart on October 11, 2008 at 7:28
Hey Papa, If there was $1,000,000 worth of clear profit on average under each acre on the Barnett(as specs have stated), worst case senario is its only worth half a million per acre now. 1/2 a million per acre.Thats $500,000 per acre.If CHPK doesnt come get it , somebody else will.And not for $15,000 an acre either.I am betting it will be CHPK by my purchase of stock next week.The doom and gloom is what we are having to try and peer through at this moment but it too shall pass.If it doesnt then we will no longer be a free country and none of this will matter anyway.Have a good one.
Permalink Reply by Kassi on October 11, 2008 at 7:00
Chesapeake may be down but they are not out. Do not forget also that there are other players in the game as well. The frenzy has subsided but in time the market will stabilize and things will proceed at a slower, more methodical pace.
Permalink Reply by Snake Stewart on October 11, 2008 at 7:29
Good to see you back KB.
Permalink Reply by Martin on October 11, 2008 at 8:23
Folks --
Chesapeake Energy closed yesterday at $16.52, down $12.40 for the week, down 57.9% for the calender year.
PetroHawk Energy, closed at $9.64 down $6.56 for the week. Down 44.3% for the year.
November NG current price per million btu, $6.53, down $0.290, An article in Barron's recently stated that a price in the range of $7.25 was required to break even in shale operations. That's one of the major reason why there is no leasing activity. That and the frozen credit market. Let's just hope that CHK and the other E&Ps can survive the next year so that they can fire up operations again.
Permalink Reply by Grillin' - MmmMmm on October 13, 2008 at 2:02
Next year? Their needs are to make it through the next 2 quarters. They have everything they need to do this, however it will involve shutting down a huge portion of their drilling and leasing. They have more than enough revenue coming in the door to pay their debt service and overhead. What they can't do is keep drilling at the pace they have and they certainly can't afford to keep leasing acreage, especially at $20,000/acre or more. They will survive if, and only if, they cut back substantially on drilling/leasing, and/or they avoid being purchased. The first they can do if they have the good sense to do it. The second is truly out of their hands!
Permalink Reply by Bill G on October 13, 2008 at 2:37
Who's Buying Who's selling CHK STOCK

TheStreet.com
InsiderInsights Top 10 Trades October 13, 2008
Below are lists of the Top 10 Open-Market insider Purchases & Sales filed at the SEC on Friday, as ranked by
dollar value. Company executives and directors are in the best position to assess the attractiveness of their
firms’ shares, and here is how many of them are voting their wallets!
Dollar value is only one metric to assess the importance of an insider transaction, however. For more valueadded
tables on a weekly basis, and fundamentally researched investment ideas inspired by insiders, subscribe
to TheStreet.com InsiderInsights Newsletter! Whether you’re a growth, value, income, momentum, or microcap
investor, insider data can help you find great investment ideas.
Top 10 Open-Market Purchases
Company Name (Ticker) Filer Name Title(s)
Shares
Bought
Dollar
Value
Calpine (CPN) SPO ADVISORY CORP BO 2,515,900 $23,491,541
DSW (DSW) SCHOTTENSTEIN JAY L CB,CEO,PR,BO 653,600 $7,859,889
Imergent (IIG) MIHAYLO STEVEN G BO 200,000 $1,788,708
Saks (SKS) INMOBILIARIA CARSO S A DE C V BO 202,000 $1,292,272
Stericycle (SRCL) MILLER MARK C CB,PR 20,000 $991,936
Trian Acquisition I (TUX) SMILOW JOEL E DIR 106,240 $908,352
Bronco Drilling Company (BRNC) WEXFORD CAPITAL LLC BO 101,700 $767,835
Retail Ventures (RVI) SCHOTTENSTEIN JAY L CB,DIR 246,900 $745,638
MSC Software (MSCS) ELLIOTT INTERNATIONAL LP BO 73,320 $647,918
Chesapeake Energy (CHK) DAVIDSON RICHARD K DIR 40,000 $636,624
Top 10 Open-Market Sales
(Non Option-Related)
Company Name (Ticker) Filer Name Title(s)
Shares
Sold
Dollar
Value
Chesapeake Energy (CHK) MCCLENDON AUBREY K CB,CEO,DIR 31,522,923 $569,324,803
Boston Scientific (BSX) NICHOLAS PETER M DIR 5,460,000 $49,214,380
Boston Scientific (BSX) ABELE JOHN E DIR 3,460,000 $31,394,381
Apartment Investment &
Management (AIV) CONSIDINE TERRY CB,CEO,DIR 989,600 $22,270,222
Coca Cola Enterprises (CCE) HERB MARVIN J DIR 1,371,100 $17,739,045
Brush Engineered Materials (BW) GENDELL JEFFREY L ET AL BO 289,100 $3,925,136
Candela Corp De (CLZR) JP MORGAN VENTURES CORP BO 1,500,000 $1,575,900
Liberty Global (LBTY) WARGO J DAVID DIR 53,000 $996,238
Unitrin (UTR) VIE RICHARD CARL CB,DIR 49,100 $847,262
Energy Partners Ltd (EPL) PEPER JOHN H VP,GC,SEC 72,761 $356,529
Permalink Reply by Bill G on October 13, 2008 at 2:46
Note that Mcclendon Sold 31.5M shares of his stock.....You guys can say what yall want to say but I told yall last weeK!!!! Cash Hungry in this market is not a good thing.....if they do get bought out by XOM, BP etc.....these large co will let there stock go in the low single digits before they start acquiring these shares back...just like a boa constrictor....in this case the markets are the body of the snake.....cash is oxygen....and XOM, BP, etc....is the mouth that will gobble it up! If this dont happen government or foreign markets will buy out there assets. If not CHK....def HK!
Permalink Reply by Keith Mauck (Site Publisher) on October 13, 2008 at 2:52
That's quite the pay day.
Permalink Reply by Bill G on October 13, 2008 at 3:04
If he wouldve sold that stock back 3 moths ago he would have made 1.9B Over that....now that is a payday! Im not sure what is averaged purchased price was per share but i do know he purchase a some of his stock for as much as 54 dollars a share....and sold them at 18.06 a share on friday.....I think he sees the writing on the wall! He can call it a move to raise capitol or what ever but it dont look good to me!
Permalink Reply by Grillin' - MmmMmm on October 13, 2008 at 3:29
He called it a "margin call"...worse than raising capital, diversifying, etc. He bought a lot of stock well north of $30/share and when it dropped below $20 the brokers came looking. For months he's been telling everyone that he was "all in". Well, looks like that bet isn't working out too well!! But I disagree with Bill G on his sale representing anything more than 1) his personal finances were leveraged and he needed to pay off the bank, and 2) yes, CHK is cash starved IF AND ONLY IF they keep spending like they have been. What you'll see: they will quit spending cash on drilling and leasing and they will weather this quarter and next. They have no problems paying their debt out of revenues, even at $5 gas. What they have a problem with is paying to drill wells and pay ridiculous prices for leases in the HS. I also agree with Bill G. that at these prices, they are mighty nice pickings for XOM, etc or Abu Dhabi to come in and buy them. At $17/share, the market is pricing their 1P proven SEC reserves at $5.00/mcf. So basically at this price you get all of their proven reserves plus they throw in all of their drilling locations and acreage for FREE!!! And remember, BP and PXP are still going to pay to fund the 2009 drilling programs in the Fayetteville and Haynesville!!

I'll be passing the hat! I think we could buy them with all of the money floating around here!! Or we could just take some of their drafts...

RSS

Support GoHaynesvilleShale.com

Top Content 

1 Looking Back At The Haynesville Shale - A Retrospective

Looking Back At The Haynesville Shale - A Retrospective
2 Pending Public Oil and Gas Hearings

Pending Public Oil and Gas Hearings
3 Arkansas Smackover Lithium Play

Arkansas Smackover Lithium Play
4 Comstock October Presentation

Comstock October Presentation
5 Aethon looks for Buyers of its Haynesville Assets

Aethon looks for Buyers of its Haynesville Assets
6 Notice Emails Are Back! Please review how they work.

Notice Emails Are Back! Please review how they work.
7 Arkansas O&G Commission unanimously denies royalty rate application for lithium extraction

Arkansas O&G Commission unanimously denies royalty rate application for lithium extraction

Blog Posts

The Lithium Connection to Shale Drilling

Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…

Continue

Posted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40

Not a member? Get our email.

Groups



© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service