CHK

[Old Tusk]

Any thoughts on them. Their bonds with a ,2021 maturity are yielding 9%. Of course the question is will it survive until 2021. Not sure I would touch the stock. I know some here have followed the them over a few years.

[HawgWild]

HiM was a big touter of this stock back in the day. NG storage is at 15 year highs right now. Price is probably at 15 year lows. I don't think that's a good combination.

[ricepig]

HiM was a big touter of this stock back in the day. NG storage is at 15 year highs right now. Price is probably at 15 year lows. I don't think that's a good combination.

Only thing is how much lower can/will it go and your risk aversion. Of course, I remember one time going long on Sugar when it was $.05/lb, thinking it can't going any lower, damn near had a train load before I was able to get out, haha.

[Old Tusk]

They sold tons of assets to try to reduce debt. When a company cannibalizes itself , it is a bad sign. Apparently the cash burn rate is really bad.

[HawgWild]

It's down right ugly when the shorts start circling.

[Old Tusk]

I wonder if Ichan still has his big stake.

[HawgWild]

If he's selling then it's below the RADAR. Wouldn't surprise me if, like Cooperman did on SD, he throws in the towel.

[ricepig]

If he's selling then it's below the RADAR. Wouldn't surprise me if, like Cooperman did on SD, he throws in the towel.

He owns, or owned 11%, it would be kind of hard to do that below the radar. He hasn't called in to Halftime on CNBC to talk to Scott Wapner, so he isn't either completely out, or isn't selling, haha.

[HawgWild]

Not sure how many CHK shares that comes to but Cooperman had 40+ million shares of SD at the start of this year and now has 0.

[aristotle]

I wonder if Ichan still has his big stake.

http://www.ibillionaire.me/securities/39/chesapeake-energy-corp/CHK

Still has 11% of the company, over 73M shares.

[Old Tusk]

Another bad sign is the talking heads are pimping it as a buy.

[theFlyingHog]

Talked to a landman couple weeks ago. They ain't lookin for new land to drill

[HawgWild]

I don't think any of the O&G companies are looking to punch a hole right now. If this Iran deal goes through look for oil prices to drop even further. We're continuing to produce more NG than we're using even though the rig count continues to drop. Not the best time to be investing here.

[ricepig]

Rig count went up this week.



http://www.wsj.com/articles/u-s-oil-rig-count-increases-to-659-in-latest-week-1437758614?mod=markets_data

[HawgWild]

Got two different stories here. It's interesting that both reports cite Baker Hughes:

•The total oil and natural gas rig count decreased by 6 units to 857 for the week ending Friday, July 17, according to data from Baker Hughes Incorporated. The oil rig count decreased by 7 units, totaling 638, while the natural gas rig count increased by 1 to 218. Horizontal rigs accounted for 76% of all rigs this week, down from an all-time high of 78% in April, but up from 2014, which averaged 68% horizontal rigs for the year.

http://www.eia.gov/naturalgas/weekly/

[ricepig]

Not two different stories, just two different weeks, we gained 21 rigs for this week.

http://www.businessinsider.com/baker-hughes-rig-count-july-24-2015-7

[HawgWild]

That explains the difference but the article does mention that 26 of the last 29 weeks have seen a decline in the number of rigs.

"The oil rig count jumped by 21 to 659 this week, according to driller Baker Hughes.

Last week, the oil rig count fell by seven to 638.

That came after two straight weeks of climbs that were preceded by 25 straight weeks of declines."

Iran dumps their oil on the market and things will only get worse if you're needing higher oil/NG prices to keep your company afloat.

[ricepig]

Not debating that, just that the rig count has bottomed according to most. Boone said that Iranian oil was such a small blip that it want have much impact on prices. I hope oil and the price of gas continue to decline, but I'm not counting on it.

[HawgWild]

T Boone?! What does he know?!  Still, I'm guessing that Iran's production costs are nearer to the Saudi's than to those in the US. They can probably sell at $30 and still make money and they need money.

[ricepig]

I'm sure their cost of production is cheap, the thing is, this oil won't hit the market for months, mid 2016.

[Old Tusk]

CHK's 5.75% bonds due in 2023 are selling for 72 cents on the dollar.

[Old Tusk]

The saga maybe drawing to an end. Bonds are going for 50 cents on the dollar.

[Dr. Leonard Ford]

The saga maybe drawing to an end. Bonds are going for 50 cents on the dollar.

I am an idiot on this stock.  The "saga" has in bankruptcy or time to buy?

[Old Tusk]

My guess is the next stop is bankruptcy.