KLR Group Raises Price Target on Chesapeake Energy (CHK) to $10; Reiterates Buy

October 25, 2016 8:20 AM EDT
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Price: $6.74 +1.81%

Rating Summary:
    9 Buy, 27 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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KLR Group reiterated a Buy rating on Chesapeake Energy (NYSE: CHK), and raised the price target to $10.00 (from $9.00). Next year, Chesapeake plans to conduct a four-rig program in the Anadarko Basin, three-rig programs respectively in the Eagle Ford and Haynesville, and a two-rig program in the Utica. Year-to-date, Chesapeake has generated almost $1 billion of net asset divestiture proceeds and plans to achieve up to $2 billion of net asset sale proceeds by year end.

Analyst John Gerdes commented, "We are increasing our CHK target price $1 to $10 per share due to an approximate 4% higher oil composition given greater development emphasis in the Anadarko Basin. Our ’17 production expectation of ~569 Mboepd (~551 Mboepd net of Haynesville/Devonian divestitures) is in the upper half of pro forma company guidance (532-562 Mboepd)."

For an analyst ratings summary and ratings history on Chesapeake Energy click here. For more ratings news on Chesapeake Energy click here.

Shares of Chesapeake Energy closed at $6.36 yesterday.

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