Q2 Preview: Chesapeake (CHK) Holders All Gassed-Up for EPS Drop; CapEx Cut in Focus
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Price: $20.99 +0.91%
Rating Summary:
8 Buy, 21 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 23 | New: 23
Rating Summary:
8 Buy, 21 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 10 | Down: 23 | New: 23
Trade CHK Now!
Chesapeake Energy (NYSE: CHK) may be set for a bloodbath after the market closes today, with its second-quarter earnings report on the docket. Shares are down about 0.3 percent in the afternoon session Monday.
Currently, analysts are looking for Chesapeake to report EPS of 8 cents on revs of $2.44 billion. For some perspective, earnings will fall about 90 percent from 76 cents reported in the same period last year, while revs dip 26.5 percent.
Estimize consensus views paint an even more sobering picture: EPS of 6 cents on sales of $1.77 billion.
BMO Capital cut its outlook on Chesapeake earlier, expecting a large reduction in its CapEx budget.
Other updates to watch out for from Chesapeake include verbiage on the Permian Basin sale, Mississippi Lime joint venture, and other non-core divestitures. The Permian sale is said to draw about $5 billion for 1.5 million acres.
Data from Streetinsider's Ratings Insider has 10 analysts at Buy, 18 with a Neutral rating, and one at Sell.
The Street's price target average is $26, ranging from $14.50 up to $42. Over the last year, Chesapeake shares have traded within a range of $13.31 to $33.87.
One potential positive is the rebound in nat gas prices. From a low at about $2.25 per mmBtu, the commodity rose to above $3 per mmBtu at the end of August. Most of the gains were from the abnormally high temps through much of the U.S. over the summer so far. Any commentary surrounding that would be an important focal point.
Then, there's Aubrey McClendon. After ceding the Chairman position earlier this year, some speculate that he might relinquish the CEO spot as well. McClendon was found out to be leveraging future gas and well sales to borrow funds for personal use. How many loans? About $1.3 billion, according to Reuters.
Catch Chesapeake earnings news at is breaks at EPS Insider.
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Currently, analysts are looking for Chesapeake to report EPS of 8 cents on revs of $2.44 billion. For some perspective, earnings will fall about 90 percent from 76 cents reported in the same period last year, while revs dip 26.5 percent.
Estimize consensus views paint an even more sobering picture: EPS of 6 cents on sales of $1.77 billion.
BMO Capital cut its outlook on Chesapeake earlier, expecting a large reduction in its CapEx budget.
Other updates to watch out for from Chesapeake include verbiage on the Permian Basin sale, Mississippi Lime joint venture, and other non-core divestitures. The Permian sale is said to draw about $5 billion for 1.5 million acres.
Data from Streetinsider's Ratings Insider has 10 analysts at Buy, 18 with a Neutral rating, and one at Sell.
The Street's price target average is $26, ranging from $14.50 up to $42. Over the last year, Chesapeake shares have traded within a range of $13.31 to $33.87.
One potential positive is the rebound in nat gas prices. From a low at about $2.25 per mmBtu, the commodity rose to above $3 per mmBtu at the end of August. Most of the gains were from the abnormally high temps through much of the U.S. over the summer so far. Any commentary surrounding that would be an important focal point.
Then, there's Aubrey McClendon. After ceding the Chairman position earlier this year, some speculate that he might relinquish the CEO spot as well. McClendon was found out to be leveraging future gas and well sales to borrow funds for personal use. How many loans? About $1.3 billion, according to Reuters.
Catch Chesapeake earnings news at is breaks at EPS Insider.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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CHK
Factsplz on Aug 6, 2012 10:52 PMMark as Spam | Reply to this comment
How do you keep your job when you "report" such flagrant lies?
Shareholders approved McClendon borrowing AND the money was used for investment in CHK wells which was also shareholder approved. Etc. etc. etc.