UBS Raises Price Target on Chesapeake Energy (CHK) to $4.25; Reiterates Sell

August 11, 2016 9:13 AM EDT
Get Alerts CHK Hot Sheet
Price: $6.68 -0.15%

Rating Summary:
    9 Buy, 27 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 17 | New: 14
Trade CHK Now!
Join SI Premium – FREE

Get daily under-the-radar research with's Stealth Growth Insider Get your 2-Wk Free Trial here.

UBS maintained a Sell rating on Chesapeake Energy (NYSE: CHK), and raised the price target to $4.25 (from $4.00), following the company's 2Q earnings report. CHK adjusted its 2016 production guidance from 625-650 MBoed to 611-638 MBoed and provided initial 2017 volume guidance of 532-562 MBoed.

Analyst William Featherston commented, "CHK agreed to convey its Barnett assets to First Reserve-backed Saddle Barnett Resources. In conjunction, it agreed with Williams Partners to terminate its current gathering agreement, projected MVC shortfall payments, & Barnett fees by paying $334MM, with Saddle expected to pay WPZ another $420MM. CHK will also pay WPZ $66MM to reduce its Mid-Continent cost-of-service gas gathering agreement to a fixed-fee arrangement, expected to reduce its Mid-Continent gas gathering cost by 36% starting 3Q16. To partially fund its $400MM total payment to WPZ, CHK sold a long-term gas supply agreement with a $4/MMBtu floor pricing for $146MM. The deals add $550MM of NAV at a cost of $400MM, boosting NAV by ~$0.20/share."

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 $4.80 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS Change, Analyst PT Change

Related Entities

UBS, First Reserve Corporation, Earnings

Add Your Comment