UPDATE: Oppenheimer Lowers Price Target on Chesapeake Energy to $28

According to Oppenheimer, Chesapeake Energy (NYSE: CHK) price target is lowered to $28.

Oppenheimer said that it maintains its Outperform rating on CHK, but are reducing its 12-18 month price target to $28/share from $35/share to reflect much lower than expected natural gas prices, which recently hit $2.50/mcf, the lowest in years. “We do not expect benefits from CHK's accelerated drilling in oil and liquids-rich plays to fully offset the impact from low natural gas prices and have reduced our earnings and cash flow estimates for the company accordingly.”

Chesapeake Energy closed yesterday at $21.45.