JP Morgan Cautious on Chesapeake Energy's 2012 Financial Plan

JP Morgan has published a research report on Chesapeake Energy CHK after the company issued details on its 2012 financial plan. In the report, JP Morgan writes, "New assets for sale that CHK previously did not identify include the Granite Wash VPP and a Cleveland/Tonkawa “financial transaction,” which appears to mean another Perpetual Preferred offering (i.e., new effective, but not technical, debt); Permian JV or outright sale; and Miscellaneous asset sales. Previously identified assets that CHK did not list include the Bakken JV, New (undisclosed) oil play JV, and possibly the Frac Tech IPO (doubtful, but Frac Tech might be listed under CHK's category of service company assets). We previously estimated these three assets to generate $1.8 Bn of cash in 2012 for CHK." JP Morgan maintains its Underweight rating on Chesapeake Energy, which is currently trading up $0.75 from Friday's $22.13 closing price.