Sterne Agee Maintains Buy on Chesapeake Energy

Sterne Agee remains Buy-rated on Chesapeake Energy (NYSE: CHK) as the company releases an updated 2012 plan that suggests resolution of funding issues for the year.

Sterne Agee says, "Chesapeake's revised 2012 financial plan, issued earlier this morning, should assuage concerns that it will not be able to meet its debt reduction target for the year in a sub-$3/mcf natural gas world, an overhang on shares in recent months. We believe the biggest driver that ensures they meet the funding gap is the news today that the company may enter into a joint venture (JV) or full sale of its Permian Basin assets. We expect shares to react favorably to this news."

CHK closed at $22.13 a share on Friday.