Market Overview

Oppenheimer's First Look at Chesapeake Energy

Share:

In a research report published this morning, Oppenheimer commented on Chesapeake Energy's (NYSE: CHK) earnings call.

According to Oppenheimer, "CHK's adjusted 1Q12 earnings were $137M, or $0.18/sh, below consensus of $0.29/sh, down 76% YoY and 69% sequentially on lower natural gas prices. Production rose 18% and 2%, respectively, with liquids volumes up 69% and 7%. CHK now expects 1Q12 to be the CAPEX peak, and lowered 2013 spending and production guidance to reflect a sharp drop in dry gas drilling, modest liquids-rich spending cuts and asset sales. CHK now faces a funding gap of roughly $9.5B this year and $4.65B next year, which it expects to offset with asset sales of $12.75B and $6B, respectively. CHK also announced plans on 5/1/12 to appoint an independent non-executive chairman in the near future amid recent concerns over corporate governance."

Oppenheimer maintains its Outperform rating and $28 PT on Chesapeake Energy, which closed yesterday at $19.60.

Posted-In: OppenheimerAnalyst Color Reiteration Analyst Ratings

 

Related Articles (CHK)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TSCOPiper SandlerMaintains119.0
UNPBMO CapitalMaintains200.0
UNPArgus ResearchMaintains205.0
ISRGJP MorganMaintains665.0
EHTHRBC CapitalMaintains132.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com