Once the transaction is completed, Chesapeake would be able to eliminate about $75 million in annual preferred dividend payments, a 3.75% overriding royalty interest payments associated with the properties and all related future drilling and override conveyance commitments.
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There are a number of sell-side research firms which offer projections on earnings and future direction of the stock. Analysts at Stephens initiated coverage on shares of Chesapeake Energy in a research note on Tuesday, July 14th. Seven research analysts have rated the stock with a sell rating, sixteen have given a hold rating and eight have issued a buy rating to the company.
Analysts at Zacks have given a short term rating of hold on Chesapeake Energy Corp (NYSE:CHK) with a rank of 3.
The target decrease was most probably noticed by stock investors, as NYSE:CHK is right now trading -4.07% lower at $10.48 as of 14:47 New York time. Analysts at Vetr downgraded shares of Chesapeake Energy from a “strong-buy” rating to a “buy” rating and set a $13.87 price target on the stock in a research note on Tuesday, June 30th.
The Goldman analysts asked why a company with nearly $3 billion of cash and a $4 billion untapped credit line at the end of March would care so much about saving $240 million a year at the risk of upsetting equity holders.
In other Chesapeake Energy news, Director R Brad Martin acquired 10,000 shares of the company’s stock in a transaction that occurred on Thursday, June 25th. The stock was purchased at an average price of $11.20 per share, with a total value of $112,000.00. Creditors may be unnerved about a cash balance that was lower than expected at the end of the second quarter, according to a report from Goldman Sachs Group Inc.
The upcoming distribution is unchanged from the prior quarter when the company slashed its quarterly payout by more than 74% from its previous four distributions. Chesapeake is engaged in the exploration, development and acquisition of properties for the production of natural gas and oil from underground reservoirs. Its operations are focused on discovering and developing its resource base of unconventional natural gas and oil assets onshore in the United States. It also provides substantial marketing, midstream, drilling and other oilfield services.
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In the case of Chesapeake Energy Corp., the RSI reading has hit 29.4 – by comparison, the universe of energy stocks covered by Energy Stock Channel now has an average RSI of 37.9, the RSI of WTI Crude Oil is at 33.9, the RSI of Henry Hub Natural Gas is presently 57.9, and the 3-2-1 Crack Spread RSI is 54.5. The Company operates in two segments: exploration and production, and marketing, gathering and compression. The exploration and production segment is responsible for finding and producing natural gas, oil and natural gas liquids (NGL).
