Brean Murray Downgrades Chesapeake Energy (CHK) to Hold; Weak Gas Pricing Outlook

Brean Murray Carret & Co. downgraded Chesapeake Energy (NYSE: CHK) to Hold.

Brean analyst says, "Widening capex/cash flow gap accompanying lower natural gas prices and uncertainty surrounding timing of capital infusions for Mississippian JV and non E&P assets make us more cautious...Net debt to cap will likely climb to 52% from 47% currently over the next four quarters absent any cutback in drilling activity. We exclude acreage purchases from our capex assumptions for 2012 and 2013. We think investors should focus on Range Resources (NYSE: RRC)(Buy) and EQT (NYSE: EQT)(Buy), given near-term catalysts for each and better self-funded growth profile at RRC, its 2012/13 hedge position, and the imminent IPO of EQT’s midstream division."

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 $20.81 yesterday.

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