UPDATE: Pritchard Capital Partners Reduces PT to $20 on Chesapeake Energy Corporation; Continuing Uncertainties

Pritchard Capital Partners reiterates its Neutral rating on Chesapeake Energy Corporation

and lowers its price target from $25 to $20. Pritchard Capital Partners says, "Given the continuing uncertainties, complexity and headline risk of the CHK story, we are maintaining our ‘Neutral' rating and are lowering our price target to $20 from $25. Our target is based on a 2013 6x EBITDA multiple which assumes that the projected net debt at the end 2012 will be approximately $11.4 billion if the company sells an additional $10 billion of assets, that 2013 EBITDA will be approximately $4,420.8 million based on a $3.30/Mcf Henry and $95/bbl WTI, and that the dilutive share count will be approximately 755.6 million. It is approximately 56% of our $36/share NAV (mid-cycle $4/Mcf Henry Hub and $90/bbl WTI). The next chapter in the CHK will likely be whether or not Carl Icahn announces his position in the company. Given the wide publicity that this might happen, we believe that some of that premium might already be baked into the stock." CHK closed at $15.52 on Monday.