UPDATE: MKM Partners Downgrades Chesapeake Energy (CHK) to Sell, Slash PT to $0.00

February 28, 2020 6:12 AM EST
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Price: $62.48 +6.64%

Rating Summary:
    9 Buy, 16 Hold, 19 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 9 | Down: 10 | New: 35
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(Updated - February 28, 2020 8:08 AM EST)

(update comment)

MKM Partners analyst John Gerdes downgraded Chesapeake Energy (NYSE: CHK) from Neutral to Sell, PT $0.00 (from $1.00).

THe analyst comments "We are downgrading CHK from Neutral to Sell and decreasing our CHK price target by $1 to $0 per share due to 5%-10% higher capital intensity, approximately 2% lower oil production composition and the uncertainty as to the long term viably of the company’s capital structure. Our 2020 production expectation of ~462.5 Mboepd is in the upper half of guidance (439-473 Mboepd) though our liquids production expectation is at the high end of guidance (~46.5 Mmboe). Assuming approximately $1.6 billion in capital spending this year, and NYMEX $56 oil/$2.65 gas, Chesapeake should generate ~$200 million in FCF this year."

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 $0.23 yesterday.


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