What is going on with CHK the last 2 weeks? It is up about 20%.
Rick, I think there is some good news somewhere. The price of gas is up from where it was 5 or 6 months ago in the $2 range, I think CHK has been repaying their loan, CHK has had some good news with Hogshooter, I haven't heard anything lately from Ohio and the people there could have agreed to extend leases for $0 and allow CHK to hold 1280's with 1 well (but I sure as heck wouldn't) and to summ up this run on sentence, CHK has been in the tank hasn't it? How big a move is 20%? Could it be just a serendipitous upturn combined with some good news, and in reality only a short term gain? If I understand correctly the CHK situation was so bad that being able to unload a significant part of the company for much needed cash could have lifted confidence slightly. In other words, I don't know but I know where I will be looking.
I know the low gas prices impacted it greatly. But I think the bad publicity and the upper level shenanigans tanked it last year. Hopefully some of this has been corrected. I’ve been worried about a buyout or failure because of the impact on the local community here more than anything. I do wish they would do something other than sit on some of our leases and HPB properties.
There are some strange things going on. Pooling orders and permits expiring even after ¼ $mil pads built and conductor pipe is in place.
Hey Rick,
As usual, RW has some logical micro economic reasons for CPK strength recently.
On a macro view, consider CPK's historical beta (movement relative to the market) that may account for some of the rise. The market may have some confidence that the deals to reduce debt will actually close, And keep in mind that the core company exploration assets are very well situated but underfunded due to Aubrey's ego an huge Enron type expansions that seem hollow of future substance. As the wheat becomes separated from the chaff, knowledgeable exploration companies with cash may be interested in exploiting the core assets. Watch the SEC filings to see if anyone is accumulating significant positions as the debt is reduced.
Just a thought as I try to get CPK off the dime on some Western OK prospective acreage HBP.
Gary L Hutchinson
Minerals Managemnt
This is just hear-say and pure speculation based on my very limited knowledge of earlier boom-times...the stories I was told as a child is that the oil companies and governments involved drilled the wells, and then they capped them in favor of holding out for a better market, or to add to the reserves in case of national emergancy or something? Would any large oil conglomerate spend 7-10 million dollars to drill one well, hit a real winner of a well, and then just seemingly lock it up and go on to another well??? The back financial news papers have always been full of stories of gas and oil wells being capped/shut down, as well as processing plants at all levels just shut down and abandoned. It is nothing new, is it? Huh? Huh? Dontcha think?
Well, I think I found the the key
Aubrey McClendon to retire as Chesapeake CEO
http://newsok.com/aubrey-mcclendon-to-retire-as-chesapeake-ceo/arti...
Up 10% in after hours trading since the release.
Rick,
Thanks for posting good news. Now if they(CHK) will clean up their act and pay mineral/royalty owners what they own them, which is not likely. I wonder how many body guards he has??? Can't tell me the Board of Directors with Chesapeake didn't know what was going on. It pays to be a crook these days.
Clint Liles
Many wells have been drilled and shut in, it's just a long term investment like any other. Best of all it probably only costs $1 per acre per year shut in royalty to maintain the leases, and if they don't even pay the shut in royalty, they probably still don't lose the lease.
The article was updated with additional information after I posted the link yesterday and additional articles linked.
http://newsok.com/aubrey-mcclendon-to-retire-as-chesapeake-ceo/article/3750169
"Chesapeake said Tuesday it is committed to its existing $6 billion drilling and completion budget for this year."
That may be good for us that have rights leased to them.
Here is a good article from Reuters:
http://www.reuters.com/article/2013/01/30/us-chesapeake-mcclendon-idUSBRE90S15920130130
Keep in mind that it was Reuters, in a series of articles last year, which uncovered the shenanigans of McClendon et al. Also, keep in mind that CHK and McClendon are currently under investigation by the DOJ and the Michigan Attorney General (among others) for collusion with Encana.
I consider it good news that McClendon is out, but I hope he and CHK are not able to "duck" accountability for the nonsense they have pulled over the years. However, CHK is very connected; it will be interesting to see how CHK continues to play out.
wilson
Note: I am from MI and part of a massive group of landowners that CHK leased, via shell companies, and then canceled all leases for bogus reasons and left the state to ramp and hype activity in Ohio.
Gary,
Sorry, I just noticed your reply from Saturday.
I can understand them not moving on some HBP areas.
However in some cases I they have stopped work on a wells that were pooled and permitted. On one they spent ¼ mil on the pad and had the base and conductor pipe in place. Another had the pad in place. I have seen quite a few dismissals of applications in Stephens co and the surrounding counties recently. These are in areas near other successful drilling in the Woodford play. Near as in 2-6 miles.
Maybe it is part of the plan to cut Aubrey and his participation rights per his contract out of the picture to increase CHK corporate (therefor stockholder’s) profit.
Interesting reading: http://beta.fool.com/elihpaudio/2013/06/19/pickens-just-bought-more-clean-energy-shares-shoul/37744/
Chesapeake and Clean Energy just split the sheets. Now lets see what happens.