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Looks like Chesapeake finally has its act together; posts 2nd quarterly earnings

  • 12 Replies
  • 2907 Views

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mohawk70

  • 10592
http://newsok.com/four-chesapeake-energy-corp.-executives-terminated/article/3871387


hmmmm ...

[conflicting comments  ... smart-alek remarks ... usual suspects ]
Please remember:  The planet Earth is a VOLCANO.   You cannot "save" a volcano ... and volcanoes do not NEED to be saved.

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macal

  • 9681

  Did their 12 billion dollar debt disappear?

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shinobi

  • 4208
It's easier to show good results for shareholders when you are permitted legally to steal from Pennsylvania landowners.   ::) :P

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bellbucci

Remember they announced these results on August 1.

I bought Chesapeake stock in Oct. 2011 and April 2012 -- up 16% on my investment so far. You can certainly fault them for their business practices, but stock performance has been good for me.

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Wax

  • 6374
Remember they announced these results on August 1.

I bought Chesapeake stock in Oct. 2011 and April 2012 -- up 16% on my investment so far. You can certainly fault them for their business practices, but stock performance has been good for me.
You had a wild ride with the stock so far. Bet you, were down at times and further ahead ?

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bellbucci

Never much further ahead, but yes, way down at times.

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macal

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  Its funny. Wall Street loves companies that cut jobs.

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Rockdale

  • 6141

  Did their 12 billion dollar debt disappear?
>>> No, but it has been getting smaller as they continue to sell off assets, usually at bargain prices.  Chesapeake is doing what every other diversified oil and gas company has been doing these last few years, switching its efforts and capital investment from dry gas to wet gas and especially, petroleum.  While plenty of Wall Street wiseacres had been predicting their imminent collapse, I never thought that was likely to happen given the sheer size and value (even if at knock down prices) of their acreage under lease.  Chesapeake in the Marcellus has certainly provided more solvent companies such as EQT and Southwestern abundant opportunities to bargain hunt, especially for land whose primary term is soon to expire without having been HBP'ed.

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macal

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  They probably got the rights to $20,000,000,000 worth of nat gas for 20 million just in NEPA on the cheap leases.

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Tim W.Pa

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Just watch how the HBP strategy starts to unfold on these "about to expire" leases.
I've just started to see hints of it here in S.W. Pa.
 640 acre units (or however many they can) for "shallow" wells. Cheaper to drill "unprofitable" well than to re-lease that 640 acres at 5000/per and new terms. Spend a few hundred thousand on a conventional well and produce just enough to turn profit after operating costs. Cost of the well don't even enter the "paying quantities" part.

Bingo just saved over $2MM in leasing costs and can HBP for much longer than a 5 year lease.
Those wells will make money for drillers but royalties will be small spread over all them acres.

Get >$5 gas and start drilling verticals again.

It's just Business after all.

« Last Edit: August 17, 2013, 12:37:06 PM by tim_yc@msn.com »
" a little rebellion now and then is a good thing"
    Thomas Jefferson  30 Jan 1787

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mohawk70

  • 10592
« Last Edit: August 17, 2013, 02:13:00 PM by mohawk70 »
Please remember:  The planet Earth is a VOLCANO.   You cannot "save" a volcano ... and volcanoes do not NEED to be saved.

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mohawk70

  • 10592

  Its funny. Wall Street loves companies that cut jobs.


It's funny.   Wall Street hates companies that declare bankruptcy.


If you are not doing all that well, and want to stay in business, then you better do something pretty quick to reduce costs and increase revenues ... otherwise, you are headed for the scrapheap.
Please remember:  The planet Earth is a VOLCANO.   You cannot "save" a volcano ... and volcanoes do not NEED to be saved.