• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 4 hours Oil prices going Up? NO!
  • 2 days Could Venezuela become a net oil importer?
  • 6 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 5 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 2 days Gazprom Exports to EU Hit Record
  • 10 hours Oil prices going down
  • 13 hours Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Oil Buyers Club
  • 2 days Why is permian oil "locked in" when refineries abound?
  • 12 hours Tesla Closing a Dozen Solar Facilities in Nine States
  • 4 hours China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 11 hours Saudi Arabia turns to solar
  • 2 days EVs Could Help Coal Demand
  • 2 hours Are Electric Vehicles Really Better For The Environment?
  • 1 day Russia's Energy Minister says Oil Prices Balanced at $75, so Wants to Increase OPEC + Russia Oil by 1.5 mbpd
  • 12 hours Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
Alt Text

Azerbaijan’s Pipeline Conundrum

Azerbaijan’s European pipeline project is…

Alt Text

Australia Looks To Tackle Its Looming Gas Shortage

The world’s soon-to-be top liquefied…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

This Natural Gas Giant Is Worth The Risk At These levels

Chesapeake Energy (CHK) is one of those companies that just don’t seem to be able to get out of their own way. They have been dogged by controversy over the last few years. Those that follow the energy sector will no doubt remember that founder and original CEO Doug McClendon retired in April of last year amid accusations of irregularities surrounding $1.1 Billion of loans that he had taken from the company. This week came the announcement that the Michigan Attorney General was bringing fraud and racketeering charges against CHK, stemming from their practices in acquiring land leases in the state. Add to that last month’s earnings that missed consensus estimates by nearly 20 percent and it seems that there is no good news around. That, though, is why the stock represents a good buy at current levels.

According to the Natural Gas Suppliers Association (NGSA)CHK is second only to Exxon Mobil (XOM) in terms of production of U.S. natural gas, so is well placed to benefit from the increasing demand and therefore price of the commodity that many analysts are predicting over the next couple of years. That has been the case for a while, though and yet Chesapeake has consistently underperformed both the broader market and the energy sector.

In the last year the stock has lost 6.47 percent compared to an 18.05 percent increase in the S&P 500 and a 12.38 percent gain in the energy sector ETF XLE. Obviously, then, there is risk in buying the stock, but…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News