Chesapeake Energy Corporation’s (NYSE:CHK) stock has been under pressure for months. It has also suffered the collapse of natural gas and crude oil prices. The situation may also have been made worse by the demise of CEO and co-founder Aubrey McClendon. The CEO is said to have died after driving into an Oklahoma City concrete bridge embankment an occurrence that which the jury ruled as an accident. Nonetheless, many folks believe that high-stress levels or guilt played a key role in McClendon’s death.
The Corp’s stock has been having an uptrend between 1994 and 1997. The trend after that had a pause for more than two years before breaking out at the end of 2007 into a series of all-time highs resting at 74 in July 2008. The 2007 breakout was followed by another breakout to rest at a 5-year low in December perhaps as a result of plunged markets occasioned by the economic collapse.
Results of the sharp downtrend of Corp’s stock
The stock has lost more than 95% of its value over a 20-month period since June 2014 which had a swing high at 31.49. This will obviously affect substantial buying power even as the stock continues to struggle at the 200-day EMA. It has also suffered same resistance from hundreds of sector stocks in the last two months.
Nevertheless, despite the major controversy in the 1st quarter after the mysterious circumstantial death of the CEO, Chesapeake Energy has been able to rise above the storm. Things seem to have eased given that its stock has bee allowed to trade on industry fundamentals from which it is likely to enjoy higher prices.
Other News about Chesapeake Energy
For $1.3-1.4B the corporation intends to sell its Barnett properties to the Dallas-based private company, Saddle Operating with whom negotiations are underway. The proceeds are expected to be a plus in meeting the company’s 2017 debt maturities. The assets have a value of 55% premium, but it is not enough to justify the current equity value to NAV. Nevertheless, there are indications that Chesapeake is doing anything possible to gain control of its balance sheet
