Chesapeake Energy Corp (CHK)

[ogbull]

A Positive Conclusion!

In my opinion, investors need to look past analysts' comments as Chesapeake Energy is actually delivering results as we can see in the points discussed above. So, I think that it makes sense to buy more shares of Chesapeake and capitalize on the recent weakness.

CHK shares have dipped massively in the past few days after Barclays slapped a $1 price target on the stock, but I think that the crash is overdone.

CHK is raising money smartly by selling assets such as the STACK play that account for just 5% of production and $20 million of EBITDA due to higher costs.

CHK has made modifications to its firm transportation agreements that will help achieve savings of approximately $650 million gross ($415 million net) over the term of the contracts.

CHK is spending capital on optimizing its completion techniques, tighter cluster spacings, higher proppant volumes, and extended lateral and superior subsurface targeting, leading to higher production at low capital costs.


http://seekingalpha.com/article/3973534-3-reasons-buying-chesapeakes-dip