discussed with this group!
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
(NYSE:CHK)‘s stock had its “hold” rating restated by research analysts at Deutsche Bank in a report issued on Thursday.
Several other research analysts have also issued reports on CHK. Vetr upgraded Chesapeake Energy from a “sell” rating to a “strong-buy” rating and set a $5.01 price target on the stock in a report on Tuesday. Wunderlich reiterated a “hold” rating and issued a $6.00 price target on shares of Chesapeake Energy in a report on Thursday, May 26th. RBC Capital cut their price target on Chesapeake Energy from $5.00 to $4.00 and set a “sector perform” rating on the stock in a report on Thursday, February 25th. Citigroup Inc. reiterated a “hold” rating on shares of Chesapeake Energy in a report on Saturday, February 13th. Finally, Zacks Investment Research upgraded Chesapeake Energy from a “hold” rating to a “buy” rating and set a $6.75 price target on the stock in a report on Thursday, April 14th. Seven research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, two have issued a buy rating and one has given a strong buy rating to the stock. The stock presently has an average rating of “Hold” and a consensus price target of $7.83.
http://www.lmkat.com/2016-06-03-chesapeake-energy-co-chk-receives-hold-rating-from-deutsche-bank/
They damn sure are not doing anything to prevent the stock from dropping! They need to put out some press releases. Explain their primary money maker is natural gas, not friggin crude oil. There is no communication from management. Maybe management is short the stock?
Everyone is playing Chesapeake as an oil stock. Day traders trade the stock on oil moves, not gas. Oil just took a dive and Chesapeake dropped to $4.11. Natgas is up $2.41 but traders ignore natgas.
One recent negative article stated:
"We believe that the future is expected to pose enormous challenges for the energy company. Given the current crude oil outlook, we expect the glut to remain. Chesapeake needs to take measures on a war footing to ensure it improves its disappointing liquidity position, to survive and sustain in the fiercely competitive industry."
Eighty percent of Chesapeake's business revolves around natgas! Natgas is expected to skyrocket in the coming year. If gas don't move CHK, then investors are screwed. Jesus Christ, management needs to publicise that fact they are in damned natgas business. And they need to do something about Barclays, who is not doubt a CHK market maker ripping off investors left and right.
This is getting ridiculous! Maybe it's time to join the shorts? I'm beginning to believe that Carl Icahn has lost his touch!
The bid and ask numbers are fake! Looks like barclays is back to their old effort to destroy this company. Maybe management is in on the deal? If management does not police market makers, we are dead in the water!
I told CEO Lawler what would happen if he did not put a stop to Barclays.
Has anyone got level two quotes? Just tell me the three letter code of the two or three market makers. I find out who they are!
When a stock is beaten into the ground, all the scumbag short jump in and try to beat it to death. Nothing makes a short more happy than to ride a stock down to zero.
They usually do okay if they get in early and get out with a profit. But if they overstay, they usually end up getting destroyed.
That's what's gonna happen with CHK. I think the selling pressure will finish very soon. The volume is just not high enough to confirm a trend down much further.
We will get hit with some blistering hot days in New York City and in other big cities. This will turn gas prices north and increase investor interest in oil and gas sector.
The one stock in the sector that has the greatest profit potential is Chesapeake. Sure it's a gamble, but gamblers like long shots that pay off big. For example SWN is at $14 and not like to increase in price much more as compared to buying in CHK at $4.20. There's a bigger gamble with CHK but a much greater payoff. This will attract investors like me who are willing to gamble to make big money.
I see this stock returning to its glory days and going on up to $30. That's more than 600% is 2 to 3 years. If I'm right, this will be my biggest hit in 30 years and then I'll hang it up.
This looks like a short raid before a turn around. The volume at 4 million and hour is just not high enough to be a serious sell off. Hold tight would be my advice.
Bloomberg's makes me want to puck! The lies and the drama just will not stop!
They had the Secretary of Labor on the air. It explained that Verizon Communications has 35,000 workers out of a strike that started in mid May and still unsettled. He did a fantastic job of showing that employment was down. He also said a lot of people went on vacations in May and that May was a slow month to find a job. He shot Bloomberg's down big time, but they are still beating the drum that world is coming to a financial crash.
They have made up their mind that they are gonna crash the market so that the big boys can scrape up all the cheap shares.
Jesus Christ... this is the shit investors have to deal with every day. I'll be glad when CHK gets to $5.50 so I can put a protect sell order and walk away from this shit!
Now a flash just ghits that US Factory orders rose the most in the last 6 months, but they will not announce this hot piece of good news because this is a raid day--a day with screw the little guy.
Lowest jobs created in 30 days but the unemployment rate dropped to 4.7% yet Bloombergs makes a huge case out of it. Weak hands sell out. What a joke. Next week they will announce a mistake was made and jobs were much higher. The stock market is always so full of shit -- you can believe nothing that comes from Wall Street!
Jobless at only 4.7% sounds fantastic!
The dollar will get weaker for a few days and then pop back up.
Nat gas is going up and so is oil!
But they need to beat up on something to shake up the market and create churn and volatility. Wall Street makes money; investors loss.
One Big Caution!
There will come a time very soon when Chesapeake becomes a high-demand stock to own. A few big trusted Wall Street firms will put out a letter to their private clients to start accumulating. This accumulation might very well start with a short attack to scare the hell out of small investors and loosen them up so they dump out early at a cheaper price. The short attack may come as a sell off of natgas futures or oil futures. These moves are usually hedged or offset with different bets. If you run out, you will be left in the dust wondering what happened.
The key is that if the short move comes at a time when there is no obvious reason, don't fall for it. Just ignore it because the best advance will come little latter.
Just like natgas is bing pushed down now from $2.44 to $2.41-- this will all turn around soon. Same thing with oil down a little. It too will turn.
Natgas is on the move up and so is crude. OPEC either goes back to a quota, or Trump will hit them with an import tax. An import tax is the simplest, easiest way to beat OPEC. But OPEC has bought off our politicians for 40 years. So long, in fact, they they honestly thought they owned a share of the US Market.
China and other oil importing counties will follow Trumps lead and OPEC is DEAD forever!
The idea of free trade is bullshit unless every country has the same cost and the same pollution controls.
We can only compete with countries with our own standards. All other countries must pay import taxes that balance their cost with our cost. Every idiot knows this except crooked US politicians.
FREE TRADE HAS NEVER WORKED BETWEEN COUNTRIES OF UNEQUAL STANDARDS AND COST!
#6 WHY BUY CHK NOW:
By 2035, natural gas turbines will be the largest source of electrical power in the U.S., jumping from 21 percent today to more than 40 percent. Coal will dip below 20 percent, while nuclear will stay flat at around 21 percent.
We are looking at a world over time that is switching to natural gas. It is the fuel of the future!
Although natural gas is the big winner, new renewables like solar, wind and geothermal will see a jump as well, rising from four percent of the mix today to 11 percent by 2035.
The outlook is the result of a variety of factors. Technology allowing fossil fuel companies to access shale gas deposits, combined with a proposed pipeline in Alaska that should kick into gear in the next decade, could keep the price of gas under the $8 per million BTU level through 2030.
Chesapeake will soar during this period!
#3 WHY BUY CHK NOW:
Advantages of Natural Gas
1. Less Harmful than Coal or Oil: As compared to petroleum or coal, natural gas causes less damage to the environment. It is made up of methane and results in less carbon emissions. In fact emissions of carbon dioxide are 45% lesser than other conventional fuels and 30% less than oil.
2. Easy Storage and Transport: Natural gas is easier to preserve than other fuels. It can be stored and transported through pipelines, small storage units, cylinders or tankers on land and sea.
3. Residential Use: Natural gas can be piped into houses for heating and cooking purposes and running a variety of appliances. Where there are no pipes, it can be supplied in small tanks.
4. Vehicle Fuel: Natural gas can be used as a fuel for vehicles (cars, trucks, jet engines). It is a cleaner, cheaper fuel than diesel or gasoline.
5. Burns Cleaner: Natural gas burns cleaner without leaving any smell, ash or smoke.
6. Instant energy: Natural gas is an economic and instant fuel for heating water and large areas as well as cooking. It is ideal because it provides precise control and quick results. It helps in oven cooking as it does not require pre-heating.
7. Precision in Kitchen: Natural gas is the best fuel to power kitchens because of its control, reliability and precision. A gas flame provides for precise temperature control and variety of heat settings allowing shift from hot to cold or vice versa, with the turning of the knob.
8. Industrial use: Natural gas is used for producing hydrogen, ammonia for fertilizers and some paints and plastics.
9. Abundant: It is relatively abundant compared to other fossil fuels, burns more cleanly and is easy to distribute.
10. Safer: It is lighter than air and tends to dissipate when there is a leakage unlike Propane, which being heavier than air, collects into explosive pockets.
11. Versatile: It can be used for heating, drying clothes, cooking, backing up generator power, and many other uses.
12. Cheaper: Natural gas is cheaper than electricity. It is quicker when used for cooking and heating water and majority of gas appliances are cheaper than electric appliances.
13. Neater: Gas appliances do not create electric fields which are unhealthy near your homes.
14. Used to Produce Electricity: In the U.S., itself, 30% of natural gas is used to produce electricity.
#2 WHY BUY CHK NOW:
There are lots of web pages put up by non-profit groups with fancy names trying to convince you to push solar and wind now and forget natgas.
They have fancy names like: "Union of Concerned Scientists"
They also have one thing in common; they are all working for the solar and wind industry.
They all have one other thing in common; they are all begging for donations to help them accomplish their goal which is to line the pockets of those that control the non-profit group. In most cases, 85% of what you give goes to pay high salaries to the leaders. The other 15% goes to pay to advertise for more donations.
All they want is your money! Check out the bottom of this web page to see the truth:
http://www.ucsusa.org/clean-energy/coal-and-other-fossil-fuels/natural-gas-gamble-risky-bet-on-clean-energy-future#.V1FcR_l96Uk
#1... WHY BUY CHK NOW!
CHK is a beaten down 80% natgas producer with the potential to hit $30 within two years simply because natgas demand is going to skyrocket.
Natural gas, the cleanest fossil fuel, is a highly efficient form of energy. It is composed chiefly of methane; the simple chemical composition of natural gas is a molecule of one carbon atom and four hydrogen atoms (CH4). When methane is burned completely, the principal products of combustion are carbon dioxide and water vapor.
Natural gas's advantages over other fuels include the following: it has fewer impurities, it is less chemically complex, and its combustion generally results in less pollution. In most applications, using natural gas produces less of the following substances than oil or coal: carbon dioxide (CO2), which is the primary greenhouse gas; sulfur dioxide, which is the primary precursor of acid rain; nitrogen oxides, which is the primary precursor of smog; and particulate matter, which can affect health and visibility; than oil or coal. Technological progress allows cleaner energy production than ever for all fuels, although the inherent cleanliness of gas means that environmental controls on gas equipment, if required, tend to be far less expensive than those for other fuels.
Comparison of Air Emissions from Fossil Fuels in pounds of air emissions per billion Btu of energy: NATURAL GAS 117,000 pounds; OIL 164,000 pounds; COAL 208,000 pounds.
SOURCE: Energy Information Administration - www.eia.doe.gov
Natural gas also is helping America develop clean alternative energy sources in various ways, such as the following:
Natural gas is used to make fertilizer for ethanol.
Natural gas is used to make methane for hydrogen.
Hydrogen is used to eliminate soot for cleaner diesel fuel.
Electric utilities use natural gas to generate clean power.
Natural gas is a raw material that goes into lightweight cars, wind power blades, solar panels and energy-efficient materials.
Using natural gas to replace less environmentally benign fuels can help address simultaneously a number of environmental concerns, such as smog, acid rain and greenhouse gas emissions.
Natural gas is highly efficient. About 90 percent of the natural gas produced is delivered to customers as useful energy. In contrast, only about 30 percent of the energy converted to electricity in conventional generating facilities reaches consumers.
In order to pursue alternative energies, the United States must safely access America's natural gas supplies to bridge the cap until solar and wind can take over. It can't happen without natural gas.
We must switch to natural gas or we all die of heatstroke from Global Warming!
cruiser998, if you have no faith, sell out. Yesterday was crappy in the minds of a lot of investors because OPEC failed to reach an agreement. Everyone is focused on the negative side of oil. I saw the disappointment on the face of the new Saudi oil minister. No doubt, Iran was the hold out. Expect oil to trade between $48 and $52 until Donald Trump takes office. Then he will slap OPEC with an import tax and OPEC is dead as far as the US Market is concerned.
We were down yesterday because we had one big seller moving out. This has not happened since I been in the stock so it does not alarm me. Buyers absorbed 30 million shares and we only lost 12 cents and regained 3 cents in after hours. The buyers caught on quickly to what was likely a forced sale and led the price lower and lower. This is what they are supposed to do. Take advantage of the misfortune of others and buy as cheap as they can.
Selling can be for a hundred reasons so we will never know why the seller sold. I watched tic by tic, the selling was not sporadic; it was meaningful and slow indicated that the seller had no choice. It was done on a day when the stock should have went up which means it was handled professionally. In other words, everything about yesterday's drop was done under calm decision--not under scared panic.
Every stock goes through days when all the indicators point up and yet the stock falls due to selling pressure from one or two big holders. But the volume was only 30 million, 18 million below the 90 day average. Had the volume ran at 12 million an hour, you would have seen me dump out. High volume confirms a price move up or down. Low volume confirms nothing.
Look on the positive side! Buying is for only one reason so I'd say longs should not be concerned with yesterday's trading.
Another point, I've been through a lot of turn around ventures in my 30 years of investing. Every one of them bounced around a lot and drove longs crazy. The only ones that turned on a dime were the ones that were bought out by a bigger player.
Chesapeake might even retrace back to $3.90 before it moves above $5, but I doubt it. I see the stock moving above $5 by the end of June and then $7 in mid-August and $10 by January 2017.
Chesapeake controls 8 million acres of fracking land at a time when all the majors want to move away from deep water to fracking. Don't look at this stock as a beat-up has been; look at it as a startup in one of the hottest industries in the United States.
We are not going up until we get rid of this one big seller. No idea how many shares he's gonna dump but it looks like a forced sale or maybe one of the stock for debt swaps. Nothing to do but hope the buyers stick around.
Maybe the seller is one of the stock for debt swaps?
I said oil and gas would come back---brent is already at $49.94, up 24 cents. WTI is $49.12 up 11 cents and rising. Natgas is trading at $2.40.
But I am a bit surprised that CHK is still down. I think this is selling pressure from a fund going through a forced sale. It looks the buyers are backing down to let the fund chase them, which is a good move. But the seller is not going lower than $4.30 and the buyers are holding at $4.29. It looks like a stand off. (Now the seller dropped his ask to $4.28) This might take another hour? I think more buyers will come in soon and eat these cheap shares quickly.
But then again, maybe I'm missing something because a lot of energy stocks are in the red. Strange indeed.
Regardless I feel certain this will not last much longer and CHK will turn green. I see a close up ~10 cents!
oil and gasoline stocks both down slightly. Not as good as expected but inventory is still going down.
"Crude oil stocks in the United States declined by 1.366 million barrels in the week ended May 27th, 2016, following a 4.226 million fall in the previous week and compared to market expectations of a 2.49 million drop. Meanwhile, gasoline stocks went down by 1.492 million barrels after rising by 2.043 million barrels in the previous week. Crude Oil Stocks Change in the United States averaged 0.10 BBL/1Million from 1982 until 2016, reaching an all time high of 12.49 BBL/1Million in April of 1985 and a record low of -15.22 BBL/1Million in January of 1999. Crude Oil Stocks Change in the United States is reported by the U.S. Energy Information Administration."
EIA reported natgas build down below expectations. This is a favorable report going into an expected higher demand for power due to hotter weather on the way in ~10 days.
Oil and gas will increase as traders absorb what has happened. OPEC meeting was a positive signal since they are trying to go back to their old ways.
It will happen or TRUMP will hit them with an OPEC killing import tax and they know it!
OPEC says they did not agree but they did. They announced this morning that they wanted to go back to the old system of limit production to stabilize prices.
What they failed to agree on was a specific number. They know that Trump will slap an import tax on OPEC crude. They also know that pouring millions on Hillary will not help her win over Trump. It will hurt her chances to have OPEC support now!
Trust me... there is a deal to limit production and it will be announced soon. They must or they are fried when Trump takes office. He has said we do not OPEC oil so he will hit them hard with an import tax.
OPEC either acts responsible going forward or they are FINISHED!
The oil traders dumped quickly but they will come back in soon buying and running the price back to above $50.
Natgas is going to $2.40.... Chesapeake will end up today!
I wrote the CEO an email a few weeks ago and told him point blank that Barclays would destroy Chesapeake and he'd be blamed. Something happened sorting after and the stock started trading what seems to be fair. I don't know if he did anything or not.
Manipulation is a big thing today. For example, the natgas futures just dove from 2.40 to 2.36 in less than a minute. This was an intentional short sell designed to scare traders. They will hammer natgas down until they can promote selling with the idea that they can buy more shares back than they had to sell to drop the price. Same thing with oil prices. But just wait. Natgas and oil will pop back up and then sell at a higher price at which time they will sell the shares they bought during the manipulation.
All this manipulation is down to a science and controlled by computers.
PEG ratio says buy buy buy!
Curios investors should consider evaluating Chesapeake's PEG ratio, which illustrates the differences between a stock’s Price, it’s Earning Per Share (EPS), and the company’s Growth Rate. If someone has a PEG ratio under one, it is classified as “undervalued”. If the PEG ratio is exactly at one, it is classified as “fairly valued”. If their PEG ratio is over 1, it is classified as “overvalued”. Chesapeake's Price/Earnings to growth ratio is 0.29 --- an extremely undervalued stock indeed.
HOLY SMOKES! OPEC READY TO CUT!
Holy shit... 3:26 AM... Just announced! OPEC showing signs of wanting to go back to the old days and control production to keep price up! Brent and WTI futures both up quickly. Brent over $50.20 and steady ticking up! WTI at $49.43 and moving! Natgas at $2.39 and steady.
I can smell the shorts burning... smells like a duck roasted with its feathers. If this news stays positive, short squeeze will send CHK to maybe $6.50 or more.
Wow wee! Nobody expected this call!
Natgas exports to Mexico up 25% in 2016.
https://www.eia.gov/dnav/ng/hist/n9132mx2m.htm
Oh my goodness... compared to 2015, demand for natgas exports in 2016 was up 25% month over month from just a year earlier. Holy smokes! We are not ready for the hottest summer on record with sky-high demand from Mexico couple with LNG exports just now getting underway. While all this demand is going on, natgas production is falling because producers don't have the cash to ramp up quick enough. We don't even have the big rigs needed to do the job or the employees needed to run them. On top of all this, there is lots of justified fear and caution against going out on a limb too fast. What if something goes wrong and demand drops? Our producers will be put out of business.
There's just going to be a shortage with a big spike in prices maybe to $5 by August?
I really feel sorry for the stupid shorts who going to lose everything. They are nice people that just made the wrong decision. They really do not deserve the pain that they have coming. Poor stupid shorts. But then again, it's there own fault because I been warning them for a long time. I just hope there's not a lot of jumping off buildings with poor families having to go on food stamps. Can you imagine having to scrape up a bloody short off the hot sidewalk. Yuk... poor ignorant SOBs.
The latest 14-day outlook!
http://www.cpc.ncep.noaa.gov/products/predictions/814day/index.php
My call for winter 2017:
Some say weather can not be predicted. Not true! Weather scientists use gigantic computers that tie in thousands of bits of data from all around the world. They have weather history going back a hundred years programmed into their computers that compare all the current data with the past weather. Predicting the weather trend months in advance is a science, not a guessing game anymore.
On the other hand, predicting weather locally a few days in advance is the difficult part because so many little changes can occur within a few hours and few hundred miles.
Bet on it! This summer will be the hottest summer on record!
The real worry is this coming winter. It will be colder than last year and there will be a lot of snow on the ground. Will this snow reflect the sun's radiating rays back into outer space? Or will this heat be held within the atmosphere by so damned much CO2?
My guess is that winter will be neither warm nor cold. It will be normal with a lot of snowstorms. This storms will keep people bottled up in their house and run up the demand for gas.
I see natgas at $4 in mid-December and maybe $5 in mid-January. But not so much because of a cold winter, but more because natgas production will not ramp up fast enough to keep pace with demand because few producers have the money needed to ramp up fast. Furthermore, producers are going to err on the side of conserving cash rather than big bets of increasing gas demand from February to April. Said differently, the winter season will be wishy-washy causing producers to conserve cash, not spend like a drunken sailor as before.
Burn me once, shame of you. Burn me twice, shame of me!
U.S. Gas Production Falls -- Demand is on the way up!
Just as I have preached... natgas production will not be able to keep up with demand. Storage levels will drop like a stone.
Shorts are gonna get scorched!
The reason is spelled out in this article:
http://seekingalpha.com/article/3979234-u-s-gas-production-falls-70-bcf-d-natural-gas-daily
I called the move back up for oil and gas an hour ago. It looked like manipulation before the open. The OPEC meeting did not release any negatives. Now we are back to yesterday's close. I now think that CHK will move back into positive territory and then add a few points!
Yep, Cruiser998.... if you can't stand the volatility, you'd be far better to move on. CHK is gonna bounce like crazy for the next 2-3 weeks. Lots of day traders working this stock using the price of oil as a trade signal. It should be trading on gas but its following oil.
My gut feeling is that oil and gas market went through a short raid today. I expect to see a turnaround in oil and gas prices in an hour or so.
I also expect to see CHK move back up.
But more than anything else, I'd like to see a high volume day. The more week hands we say goodbye to, the quickier will will get to $10.00.
Bonds rise in price!
Chesapeake Energy Co. (NYSE:CHK) bonds fell 0.9% against their face value during trading on Tuesday. The debt issue has a 8% coupon and will mature on December 15, 2022. The debt is now trading at $79.50 and was trading at $73.00 one week ago. Price moves in a company’s bonds in credit markets often predict parallel moves in its stock price.
A number of research firms recently issued reports on CHK. Vetr upgraded Chesapeake Energy from a “sell” rating to a “strong-buy” rating and set a $5.01 price objective for the company in a report on Tuesday. Wunderlich restated a “hold” rating and set a $6.00 price objective on shares of Chesapeake Energy in a report on Thursday, May 26th. Finally, Credit Suisse reaffirmed a “neutral” rating on shares of Chesapeake Energy in a research report on Friday, May 13th. Seven analysts have rated the stock with a sell rating, sixteen have given a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. Chesapeake Energy has an average rating of “Hold” and an average target price of $8.43.
http://www.lmkat.com/2016-06-01-chesapeake-energy-co-chk-bond-prices-fall-0-9/
Looks like a dull day....
But you never know what could happen. Crude is down 2% but natgas is up 3.2% ($2.36 MMBtu) not bad at all. This is a natgas play so I holding tight. I'm also afraid good news might be released and catch me hiding on the side. I'd rather stay in the saddle. If it down during the OPEC meeting, it will bounce right back in a day or so.
The stock has been trading good in the AM and dropping later in the day. I think traders are playing the usually drop. The problem is one of these days it's going keep on climbing.
Oil could also turn around on a dime.
The $20 is a longshot estimate of a buyout bid.
The big push is coming because drilling has been so low for so long. Salvaged parts have been stripped from stack rigs to keep other rigs working. There is a limit supply of the HP horizontal rigs that can drill the long holes. It will take 6 months to get these rigs up and running full blast is we started today. But no one has any money and no banks are willing to loan anymore then they have in now. Everyone is scared to go for out on a limb!
There's a lot of DUC wells but these have to be worked over and frack which can not be done overnight. If we don't see the rig could squirt up quick, we will see $4 to $5 natgas. There is no way around it.
Summer scorcher? Forecasts call for a hot one
http://www.usatoday.com/story/weather/2016/05/19/summer-weather-forecast/84588334/
Hot weather lovers, your time is coming. Most of the nation should see a warmer-than-average summer, according to a forecast released Thursday by the National Oceanic and Atmospheric Administration.
That jibes with other forecasts released earlier this month by private forecasters such as the Weather Channel and AccuWeather.
Both the East and West Coasts are expected to see the most extreme heat, NOAA said. The one area that might be near average is the central Plains.
Heat will come on strong in June in the Northeast and the Mid-Atlantic, AccuWeather said. All of the big cities of the Northeast should see more 90-degree days than usual this summer. Washington, D.C., should see 46 days when the temperature reaches at least 90 degrees, AccuWeather said. This is well above the city's typical summertime average of 31 days.
"The scales are currently tipped toward warmer than average summers," said Todd Crawford, chief meteorologist with the Weather Company, which owns the Weather Channel. "The past six summers have been the hottest six-year stretch in the last 120 years, and this summer should continue the recent trend."
As for rain, New England, the central Plains and the central Rockies will be the soggiest, NOAA reported. AccuWeather said that the dryness in the West will continue to exacerbate the drought in California and also threaten an active wildfire season throughout the region.
We often hear about oil crashing. Some jerk analyst firm puts out a notice to sell oil stocks and then goes on TV saying oil is finished. Then some other jerk group does the opposite. This increases volume and volatility so everyone but the investors makes money.
Saudi Arabia had to cut production because they were about the damage their reservoirs but they don't advertise it. Their trying to do a lot of drilling but they don't have any cash to pay the drillers--they want to give IOUs but the driller don't have any cash to the work is slowing down.
The world economy is starting to improve and demand is increasing. But no one knows for sure if oil is going to $30 or $130 so capex spending fell off a cliff and stays at the bottom. The majors don't want to invest billions to drill offshore projects anymore because fracking is much cheaper. So now global oil production is dropping and will continue to drop.
The Saudis and OPEC are aware that they made a huge mistake by trying to put US producers into bankruptcy. The know Trump will use an import duty against all OPEC oil and level the playing field. But Saudi Prince has a huge pride and some goofy ideas.
Banks don't want to invest money anymore in wildcat gamblers.
In general, everything changed in the oil market when the Saudis stopped acting as an swing producer. No one knows what's gonna happen so no one is spending the money to drill new projects. No new drilling boom and we soon run out of oil and the price goes back to the moon.
I see Brent at $80 by the end of 2016! But,like I said, no one knows for sure.
That's one reason why I'm in Chesapeake. CHK is 80% a natgas play that has little to do with the middle east. I see natgas at $4 MMBcu in August and almost $5 by January 2017 if the economy stays on track.
U.S. Gas Heads for Best Winning Streak Since 2013 on June Heat!
May 31, 2016
U.S. natural gas futures headed for the longest monthly winning streak in three years as forecasts showed hot weather making a comeback after cooler conditions next week. Link
Think About This!
Chesapeake controls 8 million acres of oil and gas drilling rights. Eight million acres is a lot of land on which to search for oil and gas.
Now all the majors want to move away from offshore and start drilling shale wells on dry ground. link
For example, Exxon just paid Seadrill $125 million to get out of its commitment to use a drillship. Conoco Phillips said last year that it was done with deepwater exploration forever. Marathon Oil announced that all of its budget in 2016 will be directed to its onshore resource plays with only $30 million that was previously committed to going to offshore work. Chevron is moving away from big ticket offshore projects and is hoping to ramp shale output up to 25 percent of the company’s production by the middle of the next decade. This list goes on and on. And this will almost single-handedly move the oil price higher in the coming two years.
How bad is offshore? Last August the U.S. held an auction for offshore oil fields in the Gulf of Mexico. Just five companies submitted bids. This was the worst showing in three decades for the Western Gulf of Mexico.
Now back to the opening... CHESAPEAKE CONTROLS 8 MILLIONS ACRES OF UNTAPPED OIL AND GAS LEASES ONSHORE IN THE UNITED STATES!
Is this untapped oil and gas property worth more today than it was when Chesapeake bought it 4-5 years ago? You bet it is! Get a little increase in oil and gas prices and this land can go to the moon in value. This asset alone may pay off all of Chesapeake's debt and then some.
Everywhere I dig, I keep finding little tidbits of facts that excite me more and more about this stock. Here's a few:
1. The stock price has been beat into the ground by circumstances outside the control of current management! Everything CEO Lawler has done so far seems to be on track to save the company and return it to its glory days as the #2 natgas producers in the USA.
2. What really hurt the company was the El Nino that brought the warmest winter on record coupled with the past expansion mistakes of McClendon.
3. The debt issue is under control and the company has a $4 billion untapped revolver in place until June 15, 2018. It also has an additional 400 million shares it can issue if needed to reduce debt.
4. Natgas demand will increase this summer due to the hot humid weather predicted by all the experts using gigantic computers, not guesses. Natgas demand will increase in Mexico along with demand for LNG. We are predicted to have a normal winter with lots of snow this year. Eleven hurricanes are projected to hit the GOM. No producers has any money to invest in drilling new wells. Banks are not lending. Drilling rigs are dilapidated and not ready to go to work. Production will not keep up with demand. Prices are likely to increase to $4 MMBtu by mid December 2016 and maybe even $5 MMBtu by the end of January 2017 especially since a lot of snow is on the way.
5. Investors like a beaten-down stock struggling to make a comeback.
6. Thousands of shorts are beating up on Chesapeake in an all out attack that is failing. Investors are beginning to see that CHK might be the best money maker of the year in the oil and gas sector. One hundred million shorts will soon be forced to reverse themselves.
7. CHK has 8 million acres of available oil and gas deposits to work or sale.
8. Global warming is real! If we do not switch from coal and crude to natgas very soon, we will all burn up in hell on Earth. Trucks, locomotives, ships, taxis, and all sorts of transport will have to switch to natgas--it is the bridge fuel into the future. We have no choice!
9. All of the above make Chesapeake a huge takeover target by a major who wants to increase his production of natgas. I see at least a $20 bid coming within the next 2 months! Exxon and GE oil and gas are my best guesses. Both companies have enough muscle to get the deal through Washington.
10. If Trump is elected, he will slap a 30% import tax on all OPEC oil and OPEC will fall apart faster than a Chinese toaster.
If I was short, I'd be clearing out right now!
On May 30, 2016, Zacks issued an updated research report on Oklahoma-based Chesapeake Energy Corporation CHK.
Chesapeake is on track with its plan of reducing long-term debt by monetizing its assets and cutting lease-hold spending. This monetization initiative is mainly aimed to cope with the mounting debt level as well as to fill the funding gap for its 2016 expenditures that resulted from volatile natural gas prices.
The company foresees remarkable cost-cut efforts as well as efficiency gains in its core operating areas. Chesapeake has the deepest inventory in the preeminent part of the Utica as well as some of the finest locations in Eagle Ford and Marcellus. These are likely to help the company in achieving its target.
Chesapeake announced a cut in its 2016 capital spending. For 2016, the company expects capital expenditure in the range of $1.3–$1.8 billion, down 57% from $3.6 billion in 2015. This should help the company in improving cash flows as the pricing weakness continues to weigh on financials.
Chesapeake remains one of the industry’s most active players in managing asset portfolio through a combination of acquisitions and disposals. With a bigger inventory of unconventional resource potential than probably any other domestic independent, Chesapeake boasts a leading position among the top unconventional liquids-rich plays comprising Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa, Mississippi Lime and Niobrara and in the Marcellus, Haynesville/Bossier and Barnett natural gas shale plays.
8.5 million shares 1st hour!
Market just popped up --- doing good --- might break $4.50
WTI breaks $50, Brent at $49.97, NatGas up to $2.26