Chesapeake (CHK) Could Be Worth 4x More Based Oppenheimer's 'Conservative' NAV Estimate

May 22, 2012 10:53 AM EDT
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Price: $81.93 -1.62%

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Oppenheimer has come out with a vigorous defense of Chesapeake Energy (NYSE: CHK) Tuesday, saying the panic sell-off is a buying opportunity.

Despite the relentless attacks by the media, the firm believes Chesapeake's net asset value, after the pending asset sales, is "several times its current share price".

Chesapeake believes its net asset value is in the $50-60B range, or $75-90/share. Oppenheimer doesn't got quite this far but conservatively estimates net asset value in the $22-37B range, or $39-63/share.

Th company has completed $2.6B in transactions YTD and is on track to complete an additional $9.0-11.5B in 2012. Proceeds are expected to fully fund 2012 capex and reduce debt to $9.5B by year-end 2012.
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 $14.91 yesterday.

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