UPDATE: Sterne Agee Downgrades Chesapeake Energy to Underperform on Asset Sale Pressures

Sterne Agee downgraded Chesapeake Energy

from Neutral to Underperform and announced a $20.00 price target. Sterne Agee analyst Tim Rezvan commented, "Based on our updated natural gas price outlook, Chesapeake's current 2013 gas hedges dampen exposure to resurgent natural gas prices. Spending plans are highly dependent on further asset sales, and we believe selling pressure could eradicate leverage with counterparties. With a $3+ billion 2013 funding gap remaining (post Mississippi Lime sale), 2013 guidance could be at risk." Chesapeake Energy closed at $22.17 on Monday.