Definitive Proof that investors should take notice on this: Chesapeake Energy Corporation (NYSE: CHK)

On Monday, Chesapeake Energy Corporation (NYSE: CHK) stock observed trading -77.88% off 52-week high price. On the other end, the stock has been noted 43.56% away from low price over the last 52-weeks. The stock disclosed a move of -26.27% away from 50 day moving average and -59.28% away from 200 day moving average. Moving closer, we can see that shares have been trading 19.07% off 20-day moving average.

Chesapeake Energy Corporation (CHK) recently stated financial and operational results for the 2019 third quarter. Highlights include:

2019 Third Quarter Results

For the 2019 third quarter, Chesapeake stated a net loss of $61M and a net loss accessible to ordinary stockholders of $101M, or $0.06 per diluted share.  Adjusting for items typically excluded by securities analysts, the 2019 third quarter adjusted net loss attributable to Chesapeake was $188M, or $0.11 per share, while adjusted EBITDAX was $577M. Reconciliations of financial measures calculated in accordance with GAAP to non-GAAP measures are provided on pages 16 – 20 of this release.

Average daily production for the 2019 third quarter was about 478,000 barrels of oil equivalent (boe), representing year-over-year growth of 3% adjusted for asset purchases and sales, and consisted of about 115,000 bbls of oil, 1.989B cubic feet (bcf) of natural gas and 32,000 bbls of natural gas liquids (NGL). Average daily production for the 2018 third quarter was about 537,000 boe and consisted of about 89,000 bbls of oil, 2.332 bcf of natural gas and 59,000 bbls of NGL. Oil production represented about 24% of the company’s 2019 third quarter aggregate production, contrast to 17% in the 2018 third quarter.

Despite lower average prices for our oil, natural gas and NGL sold, Chesapeake’s operating margin remained flat in the 2019 third quarter, contrast to the 2018 third quarter, Because of a raise in oil production mix and a decrease in cash costs. Gathering, processing and transportation and G&A expenses reduced by $109M, or about $1.39 per boe, while production expense increased $23M, or $0.86 per boe, when contrast to the same quarter in 2018.

Balance Sheet and Liquidity

As of September 30, 2019, Chesapeake’s principal amount of debt outstanding inclusive of Brazos Valley debt was about $9.732B, contrast to $8.168B as of December 31, 2018. As of September 30, 2019, the company had borrowed $1.504B under the $3.0B Chesapeake credit facility, utilized about $53M for various letters of credit, and had additional borrowing capacity of about $1.443B. Under the $1.3B Brazos Valley credit facility, the company had borrowed $900M and had additional borrowing capacity of about $400M. The borrowing base of the Chesapeake credit facility was re-affirmed in November 2019 and the re determination process for the Brazos Valley credit facility is planned for the 2019 fourth quarter.

During the 2019 third quarter, Chesapeake exchanged about 319M ordinary shares for various series of Senior Notes and preferred shares totaling a principal amount of about $733M. The company expects about $45M in interest savings in 2020 as a result of these transactions. The company believes these transactions, together with its planned reduction in capital expenditures in 2020 and other efficiency measures, will reduce its debt levels and improve the ratios under the covenants in the company’s revolving credit facility.

As of October 31, 2019, including October and November derivative contracts that have settled, about 80% of the company’s remaining 2019 forecasted oil, natural gas and NGL production revenue was hedged, including about 74% and 75% of its remaining 2019 forecasted oil and natural gas production at average prices of $59.34 per bbl and $2.83 per thousand cubic feet (mcf), respectively. Additionally, Chesapeake has basis protection swaps on about 2M barrels (mmbbls) of its remaining projected 2019 Eagle Ford oil production at a premium to WTI of about $5.67 per bbl.

In 2020, Chesapeake presently has downside protection on a portion of its 2020 projected oil production at an average price of $59.28 per bbl and on a portion of its 2020 projected gas production at an average price of $2.76 per mcf.

The USA based company Chesapeake Energy Corporation moved with change of 3.88% to $0.79 with the total traded volume of 59995019 shares in recent session versus to an average volume of 79416.16K. CHK’s shares are at -56.85% for the quarter and driving a -70.97% return over the course of the past year and is now at -62.40% since this point in 2018.  Right now, the stock beta is 2.21. The average volatility for the week and month was at 9.77% and 9.54% respectively. There are 1849.74M shares outstanding and 1849.74M shares are floated in market.


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