Chesapeake Energy Corporation (NYSE:CHK) is likely to become an acquisition target for Oil and Natural Gas Corporation (ONGC) in the coming weeks due to increasing parity in natural gas prices in the North American and Asian markets.
By Stock Croc:Still feeling the effects of too much natural gas and not enough demand, energy companies are looking for creative maneuvers for keeping their businesses profitable. Chesapeake Energy (CHK) is utilizing the technique of partaking in some good old fashioned deal negotiations to build up cash.
Chesapeake Energy Corporation (NYSE:CHK), one of the largest natural gas producers in North America, is struggling to cope with the downturn in energy sector as its huge debt load has exacerbated the situation. 2015 was a disastrous year for the energy sector as crude oil and natural gas prices collapsed to multi-year lows.
Chesapeake Energy Corporation (NYSE:CHK), a crude oil and natural gas company, is caught in an industry-wide downturn as low commodity prices haunt the energy sector. The second largest natural gas producer in the US – behind only Exxon Mobil Corporation (NYSE:XOM) – has lost more than 75% of its market value since January 1.
Chesapeake Energy Corporation (NYSE:CHK) is facing troubled times, as a significant drop in commodity prices weighs down on its sales and profitability. Amid substantially lower realized prices of oil and natural gas, Chesapeake reported its financial results for the third quarter of fiscal year 2015 (3QFY15) on Wednesday.
On Monday, January 25 the credit rating agency, Standard & Poor’s lowered its corporate credit rating for Chesapeake Energy Corporation (NYSE:CHK) stock from ‘B’ to ‘CCC+’, while it has also lowered its unsecured debt from ‘CCC+’ to ‘CCC-‘. The decision of this downgrade is primarily driven by depressed commodity prices and diminishing cash flow from operations (CFO).
On November 19, Chesapeake Energy Corporation’s (NYSE:CHK) bonds nose-dived to the lowest level in the history of the company. Investors and creditors exhibit a loss of confidence in the company, as the downturn in the commodity market continues. In the past years, the company’s notes have been the second largest, most actively traded notes in the high-yield market.
Stock of Chesapeake Energy Corporation (NYSE:CHK), the second largest US natural gas producer, is facing significant downward pressure as falling oil and gas prices coincide with negative analyst commentary.
Chesapeake Energy Corporation (NYSE:CHK) released fourth-quarter earnings for fiscal year 2014 (FY14) yesterday. While beating the consensus estimate for revenue, Chesapeake missed consensus earnings by a large margin.
By Kevin McElroy: I own shares of Chesapeake Energy Corporation (NYSE: CHK). Unfortunately, I bought them at just about the highest price they traded at this year – and they've done nothing but fall since. But I'm not selling just yet.