UPDATE: MKM Partners Downgrades Chesapeake Energy (CHK) to Sell, Slash PT to $0.00
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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."
Shares of Chesapeake Energy closed at $0.23 yesterday.
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