Chesapeake Energy shares slump on gas price (Global Markets) - Shares of Chesapeake Energy Corp (CHK.N), the second largest U.S. producer of natural gas, fell to the lowest level in more than a year on Friday, hit by a drop in prices for that fuel.Stock Market Predictions
Shares of Chesapeake fell to an intraday low of $21.61, under pressure from a slide in natural gas prices. U.S. natural gas futures slid to a 28-month spot chart lows amid concerns over a mild winter, bloated inventories and record production.
Argus Research oil analyst Phil Weiss, who rates Chesapeake a "sell," cut his earnings estimates on the company on Friday, citing low gas prices.
Chesapeake, which is shifting spending to exploration for pricier crude oil and natural gas with a high liquids content, has not hedged its 2012 gas production and has little price protection.
Shares of Chesapeake experienced a big rally after billionaire investor took a big stake in the company about a year ago. The stock shot up to intraday highs over $35 per share after Icahn's investment, but those gains have all been erased as the outlook for natural gas price remain bleak.
Shares of Chesapeake fell 33 cents, or 1.5 percent, to $21.84 in late morning New York Stock Exchange trading.
(Reporting by Anna Driver in Houston; Editing by Gerald E. McCormick)
0 comments:
Post a Comment