Chesapeake Business Practices

[Tundra]

So I should not buy any of their stock? I was thinking about taking a gamble at these low prices but if they do chapter 11 I would lose it all,correct?

Correct....

[pw405]

Pretty strong showing on the market today after announcing Q4 numbers. Wiped out $2B in debt, sold some small assets to raise cash, announced aggressive plans to wipe out debt and create a more competitive cost structure. Stock popped 20%+. I wouldn't count them out yet.

[Bellaboo]

Correct....

Why would you lose your stock on a reorg ?

[onthestrip]

Pretty strong showing on the market today after announcing Q4 numbers. Wiped out $2B in debt, sold some small assets to raise cash, announced aggressive plans to wipe out debt and create a more competitive cost structure. Stock popped 20%+. I wouldn't count them out yet.

Part of that stock pop is from buyout rumors...

[gopokes88]

Chesapeake retains $4 billion credit line | NewsOK.com

$4 billion credit line reaffirmed. No more revaluations until 2017. Great news.

[PhiAlpha]

Chesapeake retains $4 billion credit line | NewsOK.com

$4 billion credit line reaffirmed. No more revaluations until 2017. Great news.

Survive and Advance

Here's to a price rebound by 2017.

[gopokes88]

More details here.

Chesapeake amends credit facility agreement with lenders - MarketWatch

Must maintain $500 million in liquidity, $750 million if certain credit metrics aren't met by years end.

No revaluation until June of 2017.

This is a big win for CHK.

[Pete]

Yes, very good news.

Gives them a big lifeline to ride things out for a while.

I would hope once things turn around that they have their act together now. I've been impressed with their new CEO and his no-nonsense approach.

[sooner88]

The OCC recently released their new guidelines for energy lending. There were some pros and cons from a banks perspective, but one thing they stressed was for banks to remain patient. It's good to see that happening.

http://m.haynesboone.com/~/media/fil...uidelines.ashx

[Anonymous.]

Wow. CHK up 50-60% in just 3 days. Congrats to last week's buyers!

And for those that were still holding onto February shares, congrats on retirement!

[pw405]

So I should not buy any of their stock? I was thinking about taking a gamble at these low prices but if they do chapter 11 I would lose it all,correct?

A buy on 2-12-16 would have yielded some impressive gains:

[bchris02]

I was so close to buying back in the Jan/Feb range. Now I wish I would have.

[PhiAlpha]

I was so close to buying back in the Jan/Feb range. Now I wish I would have.

Ehh, hindsight is 20/20. Bankruptcy was a major possibility and if they had occurred, you might have lost everything you invested. Great move for everyone that bought, but certainly not a bad move for people who refrained.

[warreng88]

Chesapeake sells wells, leases to FourPoint

By: Sarah Terry-Cobo The Journal Record June 1, 2016

OKLAHOMA CITY – Chesapeake Energy Corp. closed a $385 million deal Wednesday on oil and gas wells and land leases in western Oklahoma.

Denver-based FourPoint Energy LLC bought about 473,000 acres in the Granite Wash and Cleveland and Tonkawa Sands petroleum formations.

Analyst Neal Dingmann said Chesapeake got a reasonable price for the assets. The energy research managing director at SunTrust Robinson Humphrey said there are a lot of wells and leases for sale in the Granite Wash, which covers a portion of western Oklahoma and part of the Texas Panhandle.

The sale includes wells that produce about 64 percent natural gas and 36 percent oil, according to a press release FourPoint issued. The company hired more than 90 former Chesapeake employees to work on newly acquired operations.

Wednesday’s sale shows Chesapeake has plenty of assets, and selling its Granite Wash wells won’t bring down its total production by much, Dingmann said. It’s important that selling assets doesn’t lower the company’s reserves, because banks determine a driller’s credit line by how much undrilled oil and gas it could produce.

CEO Doug Lawler is making the right moves to cover the driller’s short-term debt obligations, through asset sales and with his recent debt-for-equity swaps, Dingmann said.

“I can easily see them covering their financial requirements in the next few years,” he said.

Dingmann said he one of two analysts with a “buy” rating for Chesapeake, among the 39 who cover the driller. If natural gas prices continue to rise, the company will be able to bring on more production for higher margins, he said.

[warreng88]

I know this is a ways off, but does anyone know what happens to the naming rights if Chesapeake files for BK? Not saying this is going to happen, but curious if this has happened in the past and how it was handled.

[pw405]

Good question... since the former business was contractually bound to the naming rights, would the contracts still be valid after emerging from BK? Anybody know?

[HangryHippo]

Is CHK close to filing for bankruptcy or are we just curious about what it would mean for naming rights?

[OkiePoke]

Is CHK close to filing for bankruptcy or are we just curious about what it would mean for naming rights?

They are just curious. CHK should be safe for a year.

[rlewis]

A bit of a surprise--Chesapeake is pulling completely out of the Barnett Shale field in North Texas.

http://www.star-telegram.com/news/bu...e94890877.html

[Will]

A bit of a surprise--Chesapeake is pulling completely out of the Barnett Shale field in North Texas.

http://www.star-telegram.com/news/bu...e94890877.html

It's a good move for them. They were losing a lot of money there.

[warreng88]

Chesapeake notes help cut debt

By: Sarah Terry-Cobo The Journal Record September 13, 2016

OKLAHOMA CITY – Chesapeake Energy Corp. continues to make strides to reduce short-term debt obligations, said University of Oklahoma finance professor Chitru Fernando. The driller announced Tuesday results for its $750 million in notes tendered.

Fernando said note offerings are fairly common and provide an opportunity for a company to repurchase shares and provide a tender offer under better market conditions than in previous years.

“They have clearly been trying to reduce their debt burden, when you add this combined with asset sales,” Fernando said.

Chesapeake is also offering $600 million for 2.5-percent contingent convertible senior notes, due in 2037, it announced in a news release. The driller also increased its pending cash tender offers from $500 million to $800 million, for other notes. It is increasing the cap from $325 million to $610 million for notes due in 2019, according to a separate news release.

“These are short-term notes, and they’ll have to pay these in the near future, in the next two to three years,” Fernando said.

When a company has debt due in the near-term, it’s common to refinance when the market provides better conditions, he said.

Chesapeake is still recovering from the industry downturn, when falling oil prices hurt the best part of the driller’s balance sheet, Fernando said.

CEO Doug Lawler has worked since August 2013 to reduce the company’s debt, then in the tens of billions of dollars, by selling oil and gas properties and ending complex financial arrangements.

Chesapeake spokesman Gordon Pennoyer did not return requests for comment.

Shares of Chesapeake Energy, which trades under the symbol CHK, closed down 67 cents, or 8.32 percent, at $7.38 on Tuesday.

[jn1780]

Looks like Chesapeake is getting a new logo.

http://newsok.com/article/5529442

[Rover]

That is AWFUL. Very amateurish looking.

[gopokes88]

More importantly

http://www.marketwatch.com/story/che...eal-2016-12-05

[HangryHippo]

That is AWFUL. Very amateurish looking.

100% agree - looks cheap.