Replies to post #7184 on Chesapeake Energy Corp (CHK)

[Kool Aid Man]

"Natural gas prices are much lower than they were 10 years ago"

I can personally attest to that. I receive monthly royalties from a Chesapeake owned Barnett shale well and they're certainly less than they were in previous years. They've gone down the same hole and fracked at different levels a couple times since.

I'm also about to participate in a well currently being drilled in Oklahoma. It's a particularly rich discovery so, even at today's depressed prices it's apparently well worth drilling. Those rights holders who've held out are being offered leases of up to $13,000/ acre + royalty. So there'll never be a shortage of supply IMO.

It's also worth noting that 10 years ago in late 2007 the entire oil & gas industry was peaking just prior to the global economy falling off a cliff in 2008. So there's that as well.