Chesapeake (CHK) Asset Sales Will Keep Debt in Check
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Price: $81.46 --0%
Rating Summary:
20 Buy, 18 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 3 | New: 3
Rating Summary:
20 Buy, 18 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 9 | Down: 3 | New: 3
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Canaccord Genuity maintained a Buy rating on Chesapeake Energy (NYSE: CHK) and raised its price target to $29.00 (from $27.00).
Through the third quarter, Chesapeake took in $4.6 billion in proceeds from asset sales, with $6 billion previously announces sales expected to close by in early 2013. The company anticipates selling an additional $3 billion in assets in the near term, and another 4 to 5 billion by the end of 2013, noted the report.
“We believe this proceeds goal is highly optimistic. Yet, if the CHK can just achieve the near-term goal of $2.5-$3 billion in proceeds, our analysis suggests the company’s net debt-to-EBITDA should remain modestly under 3x through '17 even as CHK remains almost $2 billion free cash flow negative each year,” said analyst John Gerdes.
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 $18.49 yesterday.
Through the third quarter, Chesapeake took in $4.6 billion in proceeds from asset sales, with $6 billion previously announces sales expected to close by in early 2013. The company anticipates selling an additional $3 billion in assets in the near term, and another 4 to 5 billion by the end of 2013, noted the report.
“We believe this proceeds goal is highly optimistic. Yet, if the CHK can just achieve the near-term goal of $2.5-$3 billion in proceeds, our analysis suggests the company’s net debt-to-EBITDA should remain modestly under 3x through '17 even as CHK remains almost $2 billion free cash flow negative each year,” said analyst John Gerdes.
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 $18.49 yesterday.
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