Chesapeake Business Practices

[ou48A]

Chesapeake Energy is in a big bind.

http://www.forbes.com/sites/christop...sperate-times/

This morning Chesapeake Energy announced a new financial plan that it hopes will allow it to raise the billions in cash it needs to get through the next year or so without going bankrupt.

[Snowman]

If they are spinning off the drilling and services that might explain some of the office space purchased away from the main campus.

[Pete]

Gulp.

I really hope Aubrey knows what he is doing.

[progressiveboy]

Gulp.

I really hope Aubrey knows what he is doing.

Not good. If this happens, then it will be "another" black mark against OKC. I smell Enron or another Penn Square Bank fiasco. I really hope karma does not bite OKC in the butt

[ou48A]

CHK and other operators are being killed by low natural gas prices.

It would behoove anyone interested in the economic success of CHK & OKC & Oklahoma to actively promote the increased use of NG so that its price might rise. Supporting legislation that would increase the use of CNG / LNG fuel for transportation is probably the single biggest and best thing we could see done to increases prices.

[Pete]

I know it's a bigger issue, but in the short term this mild winter has not helped natgas prices.


McClendon and CHK seem to be used to operating on the edge and always seem to come out smelling like a rose. Hope that streak continues.

[MDot]

My heart just fell into my gut...

[ou48A]

I very much hope for the success of CHK but as someone who lived the 1980’s oil bust in a hard way, CHK has always reminded me so much of so many of the companies who failed during the bust.

CKH seems to operate so much on the edge so much of the time that it’s hard for me to trust their long team viability. I hope I’m wrong! Analysts have compared CHK to the way a hedge fund operates.

Also... I have found it interesting to compare the management style of CHK & Aubrey McClendon a Duke graduate to CLR & Harold Hamm a high School graduate.

[ou48A]

Besides higher NG prices the Utica crude oil shale play is probably CHK’S best hope to turn things around.

[metro]

Oh no, not a half million dollar fine for a multi BILLION dollar company.

[ou48A]

I have got to wonder if CHK goes the stock dilution route again?
Any ideas on this ?

[Pete]

I think the bigger issue is how they plan to fund their on-going cash requirements. Selling off assets or at least portions of them doesn't resolve perpetual budgetary issues. In fact, in the longer term it great decreases future revenue streams.

They can only sell off so much but at some point they have to generate revenue that covers the cost of their operations.

If natgas prices don't come up significantly, I'm not sure how they are going to do this.

[MikeOKC]

A Fox Business News (TV) analyst said yesterday that one person is responsible for CHK's problems right now - its CEO, Aubrey McClendon.

I hope the day never comes when I have to say to those who have scoffed at me for so long, "I told you so." (Though a case could be made that I've been proved right about the (mal)administration of Chesapeake already.) The success of CHK is absolutely crucial to Oklahoma City. The answer? A free and independent board of directors that can look at the executive team, the debt, assets, priorities, etc. Right now, the board looks out for one thing: the well-being of AKM. That has to change - and fast.

[fromdust]

agree with you mikeokc. crucial to okc and to other companies that service them. my company would take a big hit, albeit a local hit, if something were to happen to them.

[BoulderSooner]

if natgas prices stay in the <2.50 range for the mid/long term chk is in big trouble no matter whom the CEO is

[Pete]

Meanwhile, oil prices remain near all-time highs and Devon is setting earnings records.

[OKCTalker]

Meanwhile, oil prices remain near all-time highs and Devon is setting earnings records.

DEV $4.7 billion in earnings for 2011. Holy cow!

[ou48A]

This would keep natural gas prices very low, for a very long time and it would be very bad news for companies like CHK

http://rigzone.com/news/article.asp?a_id=115173&hmpn=1

[blangtang]

not a good sign when this guy on Bubblevision starts digging into your company

http://video.cnbc.com/gallery/?video=3000073735

[kevinpate]

Well, only for the CEO's profit is not fair. The company does send out quite a bit of funds into the community and the state at large for beneficial projects.
If it were a pure CEO pocket focus, such things wouldn't happen, or would certainly happen less.

I learned this morning, as one example, Chesapeake provided the local BSA council with a 500,000 grant to accomplish a new dining hall at Slippery Falls Scout Ranch, the council's primary older youth camp, located north of Tishomingo. Compared to other projects, this is a small, but much needed, project. Dang decent of them in my book.

[Teo9969]

Well, Chesapeake reports 4th Q and 2011 earnings today...

[Bellaboo]

Well MikeOKC,

I'll have to hand it to you. My son was in town over the weekend, visiting some of his old high school buddies. One works for CHK as a landman and he told him that they got an email stating there would more than likely be cutbacks. This young man has since been out interviewing.

[ou48A]

This is a significant development IMO for CHK and for the move to move to use more CNG for transportation.

Click to read more
http://www.bizjournals.com/pittsburg...html?ana=yfcpc

Chesapeake Energy Corp. and 3M will be designing and manufacturing a compressed natural gas tank that will be used in CNG vehicles in the future.

….. right now the most expensive part of a CNG vehicle is the gas tank.

The new technology developed by 3M is up to 20 percent lighter, carries up to 20 percent more and will be less expensive…..

[OKCTalker]

The CHK whisper number is $0.59 EPS, and the stock has been trending up all week. Won't they release their earnings after markets close today?

[catch22]

Yes most businesses always report earnings after markets close. Whether that be profit or loss reports. Just so news has time to filter through the market so trades won't happen out of reflex or emotion. Good news will make a market eager to buy the next day, bad news will have time to settle and have a nights sleep to think about selling -- and hopefully not sell.