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) 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 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), US oil and natural gas company, has been dealt another blow while it goes through a severe industry downturn. A collapse in crude oil and natural gas prices last year has seen futures fall to multi-year lows in 2015. Crude fell as low as $37 per barrel – their lowest level since the 2008 crisis - and natural gas prices fell below $2 per million British thermal units (BTU) for the first time in two years.
A downturn in the global energy sector, signified by slowing economic growth and a weak demand, has presented oil and gas companies with significant challenges. North American oil and gas company, Chesapeake Energy Corporation (NYSE:CHK), is hoping to cope with the downturn through cost management, dividend payment suspension and capital expenditure cuts.
Chesapeake Energy Corporation (NYSE:CHK) announced fourth-quarter earnings for fiscal year 2014 (FY14), and missed the analysts’ expectations for earnings.
Following the release of Chesapeake’s earnings, Barclays Capital issued a research note. The research firm’s analyst expected investors to react negatively, as the earnings and cash flows reported were lower than Barclays Capital’s estimates, and missed the consensus estimates as well.
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.