Chesapeake Energy Corp (CHK)

[LouisDesyjr]

Spot market higher price not showing up at pump

I expected that higher spot prices would effect the price of gasoline at the pump in going higher, but this morning I saw two local gas stations selling regular under $1.60. One station was at $1.57/gal and another one just a few miles down the road, was at $1.59. This is the lowest price for gasoline that I have seen in years, maybe more than a decade.

In the 10K, CHK mentioned that they have their production hedged at $47/barrel for oil and $2.50/MCF for NG.

If all of their production is hedged at those prices, it will not help CHK unless prices go above those marks.

Louis J. Desy Jr.