Chesapeake Energy Corp (CHK)

[mikeymgd]

Its possible but unlikely.

Natural Gas is capping this stock for sure but oil is at a 5 year high and should help to offset the future hedging problems.

It may be in CHK's best interest to shift their business model to a heavier oil dependent play and shutter some NG business until the gas glut shows signs of ending. The reduction of expense in the later half of 2018 may be a good idea.

Oil is still insanely profitable for them so it should help them contineu to pay off debt. Remember they did pay down debt by 32% last year so hopefully then can do at least half of that this year. If they can do that, Cash Flow will become rather large in the next 12-24 months.