Chesapeake Energy Corp (CHK)

[researcher59]

Stifel maintains BUY but cuts price target from $10 to $6 -

per briefing.com -

Chesapeake Energy target lowered to $6 at Stifel (4.14 ) : Stifel lowers their CHK tgt to $6 from $10. Chesapeake announced plans to move to a 14 rig program by year-end from 18 rigs currently, as well as removing 20 gross wells from the completion calendar, a reflection of the company's need for cash flow in context with a challenged oil and NGL price environment (50% of CHK's revenues). However, CHK reiterated its full-year guidance, noted continued positive developments from the gas assets and noted year-end 100,000 bbl/d oil target remains on track. We had cut rig activity prior to the quarter when we reduced our target price to $/6sh from $10/sh, thus view the quarterly results as incrementally positive from an operations standpoint. That said, reduced activity in '18 and lower commodity environments reduces '19 growth flat Y/Y before returning to 4% in 2020. Buy