Ticonderoga Maintains a 'Buy' on Chesapeake Energy (CHK); Q1 First Take: Higher Spending Overshadows Strong Operating Results
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Price: $21.51 +3.17%
Rating Summary:
9 Buy, 20 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Rating Summary:
9 Buy, 20 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 28 | New: 13
Trade CHK Now!
Ticonderoga maintains a 'Buy' on Chesapeake Energy (NYSE: CHK), PT $40.
Ticonderoga analyst says, "Chesapeake Energy reported 1Q’11 results that show production and cost beating expectations while proceeds from the Fayetteville Shale were used to slash debt. However, the company raised its 2011 budget for drilling and completion expenditures by roughly 10%, as its 1Q spend rate was higher than anticipated. We would expect a negative reaction from the market given that CHK is in the process of restructuring its balance sheet and paying down debt. CHK, perhaps in response to its higher CAPEX, also detailed a more robust asset monetization program with another volumetric production payment (VPP) sale and potentially 2 additional joint-venture divestments, one of which was unexpected."
For more ratings news on Chesapeake Energy click here and for the rating history of Chesapeake Energy click here.
Shares of Chesapeake Energy closed at $33.23 yesterday, with a 52 week range of $19.62-$35.95.
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Ticonderoga analyst says, "Chesapeake Energy reported 1Q’11 results that show production and cost beating expectations while proceeds from the Fayetteville Shale were used to slash debt. However, the company raised its 2011 budget for drilling and completion expenditures by roughly 10%, as its 1Q spend rate was higher than anticipated. We would expect a negative reaction from the market given that CHK is in the process of restructuring its balance sheet and paying down debt. CHK, perhaps in response to its higher CAPEX, also detailed a more robust asset monetization program with another volumetric production payment (VPP) sale and potentially 2 additional joint-venture divestments, one of which was unexpected."
For more ratings news on Chesapeake Energy click here and for the rating history of Chesapeake Energy click here.
Shares of Chesapeake Energy closed at $33.23 yesterday, with a 52 week range of $19.62-$35.95.
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