Tuesday, May 24, 2016 3:45:06 AM
On top of this, CHK is a day-traders dream stock--they trade it on the price of oil. not gas. This is weird, but this is what is happening. Take the day-trade volume out of yesterday's total and I doubt that were any more than 10 million shares traded by normal investors. So the stock went down anyway. But most serious longs don't give a rat's ass what happens day to day. They are waiting for hot hot hot summer that will become obvious starting in June. link
And don't forget the humidity and the increase in hurricanes hitting the GOM. These are plus factors for NatGas.
For some reason, many on this board ignore volume and bitch about everything else as you are now doing. They also ignore that Chesapeake is the second largest gas producer in the US behind XOM. They can ramp up production in their Marcellus play to 2.8 BILLION CUBIC FEET PER DAY. Their oil is hedged at $47.36 and NatGas is hedged at $2.71.
Management may start producing all out at any time. I believe this is the signal the major share holders are waiting on. They've done the numbers a hundred times. If their calculations were scary, they would be running out as fast as they could and volume would be 100 million per day.
Chesapeake's gross sales can reach the moon and all their problems can be cured within 2-3 months of high productions. Confidence will be restored and CHK will triple. That's why the longs are holding and not selling as evidenced by the low volume.
U.S. gas demand,averaged 64 Bcf/d from April through October of 2015, 2.3 Bcf/d higher than the previous record, set in 2012. This was due to a combination of hotter-than-normal weather and resultant higher gas utilization. 2016 will break 2015's record. EIA's forecast U.S. total natural gas consumption at 76.5 Bcf per day, which is 12.5 Bcf per day higher than 2015.
Here's the bad news for shorts: An exhaustive, county-by-county analysis of the 12 major shale plays in the U.S. (accounting for 89% of current tight oil and 88% of current shale gas production) concludes that both oil and natural gas production will peak this decade and decline to a small fraction of current production by 2040.
Shale plays suffer from high decline rates and declining well quality as the “sweet spots” run out, meaning that ever more wells will have to be drilled just to keep production flat—until even that is no longer achievable. Continued drilling requires massive amounts of capital, which can only be supported by high levels of debt or higher prices.
Rig counts are at 40 year lows. DUC numbers will not be able to carry production higher. Banks are not giving money to producers. Rigs are in poor repair. The drillers could not respond fast enough to meet demand as when you consider falling productions.
Recent CHK News
- F5 Shares Rise 15%; Diageo Falls 10% on Annual Sales Decline; BP Boosts Dividend and Buyback Program • IH Market News • 07/30/2024 10:03:59 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 07/29/2024 08:14:45 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 07/29/2024 08:06:19 PM
- CHESAPEAKE ENERGY CORPORATION REPORTS SECOND QUARTER 2024 RESULTS • PR Newswire (US) • 07/29/2024 08:01:00 PM
- U.S. Index Futures Climb Pre-Market as Tech Earnings, Fed Meeting Loom • IH Market News • 07/29/2024 10:25:38 AM
- CHESAPEAKE ENERGY CORPORATION PROVIDES 2024 SECOND QUARTER EARNINGS CONFERENCE CALL INFORMATION • PR Newswire (US) • 07/16/2024 08:01:00 PM
- CHESAPEAKE ENERGY CORPORATION RELEASES 2023 SUSTAINABILITY REPORT • PR Newswire (US) • 06/11/2024 12:30:00 PM
- CalPERS to Oppose Exxon Mobil Directors; Microsoft Unveils Copilot+ PCs with AI Focus, and More News • IH Market News • 05/21/2024 11:18:35 AM
- CHESAPEAKE ENERGY CORPORATION REPORTS FIRST QUARTER 2024 RESULTS • PR Newswire (US) • 04/30/2024 08:02:00 PM
- CHESAPEAKE ENERGY CORPORATION PROVIDES 2024 FIRST QUARTER EARNINGS CONFERENCE CALL INFORMATION • PR Newswire (US) • 04/17/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/04/2024 09:14:13 PM
- Form S-4 - Registration of securities, business combinations • Edgar (US Regulatory) • 02/29/2024 10:25:49 PM
- Nvidia’s Earnings Skyrocket by 769%, BuzzFeed’s Pre-Market Shares Surge by 85%, and Other Highlights • IH Market News • 02/22/2024 11:08:52 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/20/2024 09:08:15 PM
- CHESAPEAKE REPORTS FOURTH QUARTER AND FULL-YEAR 2023 FINANCIAL AND OPERATING RESULTS AND ISSUES 2024 OUTLOOK • PR Newswire (US) • 02/20/2024 09:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 05:34:38 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 05:10:38 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/14/2024 04:01:49 PM
- Form SC 13G - Statement of acquisition of beneficial ownership by individuals • Edgar (US Regulatory) • 02/14/2024 03:04:43 PM
- CHESAPEAKE ENERGY CORPORATION, DELFIN LNG AND GUNVOR SIGN LONG-TERM LNG LIQUEFACTION OFFTAKE AGREEMENT INDEXED TO JAPAN KOREA MARKER • PR Newswire (US) • 02/13/2024 01:00:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/09/2024 11:19:03 PM
- CHESAPEAKE ENERGY CORPORATION PROVIDES 2023 FOURTH QUARTER AND FULL YEAR EARNINGS CONFERENCE CALL INFORMATION • PR Newswire (US) • 02/06/2024 11:15:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/11/2024 09:58:22 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/11/2024 11:14:46 AM
- CHESAPEAKE ENERGY CORPORATION AND SOUTHWESTERN ENERGY TO COMBINE TO ACCELERATE AMERICA'S ENERGY REACH • PR Newswire (US) • 01/11/2024 11:00:00 AM
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