Chesapeake (CHK) Dips as Partner Eases Investment in Texas Shale
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Chesapeake Energy (NYSE: CHK) is seeing some pressure today following news from key shale gas partner, Total S.A. (NYSE: TOT).
According to Total CEO Christophe de Margerie, the energy giant has slowed investments in Texas shale gas projects due to prices dropping below the cost of production. The company will continue to invest in other shale projects, which are generally more condensate-rich and profitable.
Total recently wrote-down the asset value of the Barnett shale play in Texas, where Chesapeake is a partner. The two have several other partnerships across the U.S.
Shares of Chesapeake are down over 3.6 percent Thursday.
According to Total CEO Christophe de Margerie, the energy giant has slowed investments in Texas shale gas projects due to prices dropping below the cost of production. The company will continue to invest in other shale projects, which are generally more condensate-rich and profitable.
Total recently wrote-down the asset value of the Barnett shale play in Texas, where Chesapeake is a partner. The two have several other partnerships across the U.S.
Shares of Chesapeake are down over 3.6 percent Thursday.
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