UPDATE: Ladenburg Thalmann Downgrades Chesapeake Energy to Neutral

Ladenburg Thalmann has published a research report on Chesapeake Energy

and has downgraded the company from Buy to Neutral after reduced natural gas price outlook. In the report, Ladenburg Thalmann writes, "Concurrent with Q1 results, CHK reduced its liquids production guidance for 2012 by ~13 MMBbls (~25%) and for 2013 by ~19 MMBbls (~25%). We estimate about one half of the reductions are due to planned asset monetizations (Permian Basin, Mississippi Lime, Eagle Ford VPP and others) with the other one-half due to a planned reduction in its liquids rigs (from an average of 123 operated liquids rigs in Q1 to an average of ~115 rigs in 2H '12) and infrastructure (Eagle Ford) and other constraints." Ladenberg Thalmann has lowered the price target from $32 to $20 on Chesapeake Energy, which is currently trading down $2.66 from yesterday's $19.60 closing price.