Chesapeake Energy Corp. (CHK): Jim Cramer Opinion

By Andrea: http://oilshalegas.com

August 11, 2010: Jim Cramer featured Chesapeake Energy Corp. (CHK) last night on Mad Money and is convinced that the stock is a strong buy. With Chesapeake's recent 2010 Q2 earnings report and announcement that they own the largest acreage in both the Eagle Ford Shale and the Niobrara, they may have finally carved out a bottom according to Cramer. Cramer rallies for the stock based on Chesapeake's recent debt deal they completed in addition to the 14% production increase they noted in their 2010 2Q earnings call. However; the stock is not getting the attention it deserves, says Cramer. After its huge fall in the past few months, investors are afraid to touch the stock. Cramer takes us to the charts and points out the "W" in the stock's trend, a series of higher lows over a period of time. Cramer may be ready to regain his credibility when it comes to Chesapeake Energy:



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Chesapeake Energy in Niobrara and Eagle Ford Shale

By Andrea: http://oilshalegas.com

Chesapeake Energy Corp. (CHK) announced that they own the largest amount of acreage in both the Niobrara and the Eagle Ford Shale. CEO Aubrey McClendon reports:

"We now own the largest inventory of leasehold in two of the top three new unconventional liquids plays in Niobrara and the Eagle Ford Shale, where we now on 675,000 and 550,000 net acres, respectively, located very strategically in the liquids-rich portion of each play. We are especially pleased about our position in the Eagle Ford and are very excited to move forward with the JV on this acreage. We are in good position here with many potential partners, all of whom we believe are working hard to get to the right answer."

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Haynesville Shale: Chesapeake Energy CHK 3/2/09

Today, Chesapeake Energy ( CHK) has come out and announced an update on their joint venture with Plains Exploration ( PXP ) regarding the Haynesville Shale.

Chesapeake has elected to curtail approximately 240 million cubic feet of natural gas equivalent (mmcfe) per day of its gross natural gas and oil production due to currently low wellhead prices in the Mid-Continent region. The company has curtailed approximately 200 million cubic feet per day of gross natural gas production and approximately 6,000 barrels per day of gross oil production for at least the month of March 2009. The curtailed production represents approximately 7% of Chesapeake’s current gross operated production capacity. Additionally, the company is considering a further 10% reduction in its drilling activity during 2009 if natural gas and oil prices remain low during the next few months. The company’s attractive hedges and cash availability provide it with the operational and financial flexibility to curtail production during periods of unusually low prices, such as the current market environment. The company believes conditions are developing that will support higher prices for natural gas and oil later this year and in 2010.

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Haynesville Shale: Caddo Parish, Louisiana - Cubic Energy

Today, 1/28/09, Cubic Energy ( QBC ) has come out and given an updates on an additional well being drilled in the Haynesville Shale. This well is located in Caddo Parish, LA.

Cubic Energy (QBC) announces today it has accepted a proposal to participate in the horizontal drilling of Chesapeake Energy's ( CHK ) Clingman Acres 11H well. This well is located in the Johnson Branch Field of Caddo Parish, Louisiana, and will be horizontally drilled to a measured depth of 17,000 feet, followed by a Haynesville Shale completion.

The Clingman Acres 11H is located in Section 11, Township 15 North - Range 15 West in Caddo Parish, Louisiana, which is adjacent to the east side of Cubic's Johnson Branch Acreage. Cubic has an estimated 2.8% working interest in the well.

Cubic currently has 12 wells producing in its Johnson Branch acreage, and 10 wells producing in its more southern acreage position of Bethany Longstreet in DeSoto Parish, Louisiana.
Calvin Wallen III, Cubic's President and Chief Executive Officer stated, ``The Clingman Acres 11H will be located on the eastern edge of Cubic's Johnson Branch Acreage. This area has been proven, through Cubic's vertical drilling and Chesapeake's horizontal drilling, to be extremely prolific in the Haynesville Shale. We are very excited to have yet another opportunity for Horizontal Haynesville Shale development.''

Cubic Energy, Inc. is an independent company engaged in the development and production of, and exploration for, crude oil and natural gas. The Company's oil and gas assets and activity are concentrated primarily in Texas and Louisiana.

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Chesapeake Energy ( CHK ) 12/8/08 - Looking to Sell More Assets

Chesapeake Energy ( CHK ) shares have been hit hard over the past several weeks due to deteriorating confidence in once highly respected management. Insider Stocks Sales, Dilution has really hit CHK stock hard. Today, 12/8/08, Chesapeake Energy seems to realize they have burned shareholders and are taking a few steps in the right direction to gain back shareholder confidence.

Chesapeake Energy is looking into selling some Fayetteville Shale Assets and will decrease the shelf offering to 25 million shares.

http://www.chk.com/News/Articles/Pages/1233294.aspx

http://blackberrystocks.blogspot.com/

Marcellus Shale: Chesapeake CHK Sells to StatoilHydro

Chesapeake Energy Corporation ( CHK ) Announces Marcellus Shale Joint Venture and International Unconventional Natural Gas Exploration Alliance with StatoilHydro, Today, 11/11/08.

Chesapeake Energy Corporation (CHK) today announced the execution of an agreement for a joint venture with StatoilHydro (STO) whereby StatoilHydro will acquire a 32.5% interest in Chesapeake's Marcellus Shale assets in Appalachia for $3.375 billion, leaving Chesapeake with a 67.5% working interest. The assets include approximately 1.8 million net acres of leasehold, of which StatoilHydro will own approximately 0.6 million net acres and Chesapeake will own approximately 1.2 million net acres.

StatoilHydro will pay $1.25 billion in cash at closing and will pay a further $2.125 billion from 2009 to 2012 by funding 75% of Chesapeake's 67.5% share of drilling and completion expenditures until the $2.125 billion obligation has been funded. Chesapeake plans to continue acquiring leasehold in the Marcellus Shale play and StatoilHydro will have the right to a 32.5% participation in any such additional leasehold.

Additionally, Chesapeake and StatoilHydro have agreed to enter into an international strategic alliance to jointly explore unconventional natural gas opportunities worldwide. Closing of the transaction and strategic alliance is anticipated to occur by year-end 2008.

For more shale updates, visit, http://blackberrystocks.blogspot.com/

Haynesville Shale: Leasing & Mineral Rights Problems

There is no doubt that the sudden drop in natural gas prices has had a huge impact on the Haynesville Shale formation in East Texas and Louisiana. If any of these Shale plays in the USA and Canada can overcome this type of drop it would be the Haynesville Shale and Barnett Shale.

With many companies such as Chesapeake Energy ( CHK ) and Petrohawk Energy ( HK ) cutting back on drilling and their budget, mineral rights leasing will fall as well. In fact, Landowners are nervous about what I described above. Some even fearing they won't get paid. This is why it is so important when signing a mineral rights lease that you take it seriously and hire a great lawyer to represent you.

Here is a great article about what is happening right now with regards to the land leasing from Chesapeake Energy. http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20081018/NEWS01/810180357/1060

"The key is in the wording, Fitzgerald said. What she's witnessed in the past few days is Chesapeake not honoring an "agreement to lease" prepared by the company's own legal counsel. The document, which landowners she represented opted for instead of a letter of intent, states it is a binding and enforceable agreement but it is still not the actual lease."

http://oilshalegas.com

Haynesville Shale - Chespeake Energy ( CHK ) Completes Three New Wells Avg 10MCF/D

The Haynesville Shale is still alive and well! I was getting worried it vanished since we haven't heard much news lately. This most likely has to do with the recent collapse of natural gas prices.

Chesapeake ( CHK ) Completes Three New Haynesville Shale Wells in September with Average per Well Initial Production Rates Exceeding 10 MMcfe per Day.

“Finally, I am also pleased to announce that Chesapeake completed three new horizontal Haynesville Shale wells in September with average initial production rates exceeding 10 mmcfe per day on restricted chokes with high flowing casing pressure. We look forward to initial production commencing from our first PXP joint venture Haynesville Shale well in October and will provide a full update on the Haynesville Shale and other important plays at our Investor and Analyst Meeting in Oklahoma City on October 15 and 16, 2008. This meeting will be webcast so that all investors will be able to learn more about our operations and prospects for future growth.”

http://phx.corporate-ir.net/phoenix.zhtml?c=104617&p=irol-newsArticle&ID=1199524

Woodford Shale - EPM Evolution Petroleum Gives Update 9/23/08

EPM Evolution Petroleum is out with their latest Woodford Shale Update below. You've probably noticed but my blog has been semi quiet. Ever since the fall of natural gas prices from $14 to $7....news on these shale plays such as the Haynesville Shale, Marcellus Shale, Fayetteville Shale has fallen off a cliff. The natural gas gold rush has subsided for now, but it will be back. Now is the time to buy stocks like Chesapeake Energy ( CHK ) and Encana ( ECA ).

"As previously announced, our 2009 capital budget includes initialdrilling in our Woodford Shale projects in Oklahoma and initial drilling in anew project in Texas, both expected to occur late in the fiscal year," addedHerlin. "The 2009 capital budget also provides for up to $3 million in newleasing in the Giddings Field, our Oklahoma gas shale projects and our newTexas project. We have now acquired leases on more than 17,600 net acres inOklahoma and are very encouraged by the drilling results of operators alsodeveloping the shallow and mid-depth Woodford Shale near our leases."

Haynesville Shale - CHK Chesapeake Energy drilling Update

Just wanted to do a little update on Chesapeake Energy ( CHK ) and where they stand regarding the Haynesville Shale.

As of August 1st, 2008, CHK had 440,000 Haynesville Shale acres from Mineral Leases. Chesapeake Energy had 550,000 acres but sold a 20% stake to PXP Plains Exploration.

Chesapeake is on pace to operate 12 rigs by 2008, 30 rigs by 2009, and up to 60 rigs by the end of 2010. So big growth is expected here!

CHK feels that one day acreage in the Haynesville Shale will be worth $50,000 per acre.

At $42 per share for CHK at this moment, you are basically getting the best Natural Gas shale play ever ( This in my opinion will be the case several years from now ) for FREE

Haynesville Shale: ( CHK ) Chesapeake Energy - Bossier Parish

Bossier Parish Asks Questions About Shale!

The Bossier Police Jury got a chance to ask about the Haynesville Shale during its biweekly meeting Wednesday. Kevin McCotter, corporate development director for Chesapeake Energy Corp., stopped by for a brief question-and-answer session.

"Very soon, we'll see rigs in places you never thought possible," he told jurors after a presentation on Chesapeake Energy's activities in the area. The company soon will be even more active, "ramping up our operations so significantly in northwest Louisiana," he said.
Chesapeake Energy has about 550,000 acres of land under lease and about 10 rigs in the ground, McCotter said, adding the company expects 30 rigs in place in 2009 and 60 in 2010.
Chesapeake Energy representatives gave a brief PowerPoint presentation, showed a short video and even brought a basketball to illustrate how roughly one cubic foot of natural gas looks.
Jurors asked several questions, including where Chesapeake Energy will build its natural gas pipelines (several directions), how long it takes to drill down into the shale (about 50 days) and how effective the prototypes of natural gas-run cars could be (McCotter said he even is thinking about getting one).

The presentation was meant to be informative, and no formal action was taken. Bossier Parish's mineral rights will be put out to bid through the Louisiana Mineral Board in October.
The Police Jury took action on other matters Wednesday, including having a public hearing to consider adopting new Federal Emergency Management Agency flood maps for the parish and awarding bids for several small construction projects in the parish.

By Drew Pierson

http://www.shreveporttimes.com/apps/pbcs.dll/article?AID=/20080821/NEWS01/808210332

Oil prices going Higher - Natural Gas prices 8/07/08

Oil is up almost $3 this morning to $121.35.....as I expected, the flush under $120 was short lived. People have been preaching under $100 oil for the last few days...and this is the second significant bounce we've gotten since Oil has gone under $130 in the past few weeks.

To me Oil seems like it is putting in a bottom here. People are kidding themselves thinking oil will go to $85. Yes, at $148 we have seen demand destruction but there is still a lot of demand and that is only going to get worse in the coming years.

People that are having a hard time with Oil prices going up should be putting money into the United States Oil Fund ( USO ) so at least when you are getting killed at the pump you are making money back as a hedge. This stock can be bought be anyone!

I personally think we will see $150-$160 oil in the next 6 months as winter approaches.

Natural Gas has gotten killed over the past month....from $14 down below $9...and that to is really to bounce back. Today it is around $9. I have bought stocks like Chesapeake Energy ( CHK ) and XTO Energy ( XTO ) They are huge operators in the shale plays around the United States. The Haynesville Shale has been huge and will continue to get even bigger. If Natural gas prices stay around $9-$10 this quarter, Chesapeake will make about $2 billion dollars this quarter on hedging activity since they lost 2 billion last quarter when Nat Gas was higher. This alone would give CHK stock a pop. Remember this when they report earnings in three months!

Barnett Shale - Chesapeake ( CHK ) record mineral rights lease

Chesapeake Energy CHK is working on a 650 acre lease on Lake Worth and Fort Worth properties located in the Barnett Shale. If this mineral rights lease deal gets done, it will be a record! Rumor has is Chesapeake is ready to pay out a $30,000 per acre signing bouns as well.

About 1,200 property owners in Boat Club Estates, Highland Lake Estates, Jinkens Heights, Crestview, Crestridge, Triangle Estates and Lakeview Estates are involved in the lease. The land is roughly bounded by Lake Worth to the west, Azle Avenue to the south, Boat Club Road to the east and Basswood Court to the north.

XTO appears to have been one of the bidders pushing this deal to a record.

Full Article Here

Chseapeake CHK vs XTO Energy Haynesville Shale

Who would have thought their would be drama in shale plays? A few weeks ago, the XTO Energy CEO on the Conference Call said people who are saying that the Haynesville Shale holds 250 trillion cubic feet of natural gas are hyping this shale play.

Today the Chesapeake CEO gave research data to back this figure up and they stick to what they think is over 240 trillion cubic feet of natural gas in the Haynesville Shale. The CEO says he is not hyping this shale play, rather is going by research.

Chesapeake says the core area in the Haynesville Shale could eventually see up to 50,000 per acre.

Chesapeake Energy says they are producing 45 million cubic feet per day of natural gas from 11 wells.....

Chesapeake (CHK ) Haynesville Shale Update

Chesapeake has released their earnings and details about their haynesville shale position.

Chesapeake continues to experience outstanding drilling results in its recent significant Haynesville Shale discovery in Northwest Louisiana and East Texas. Based on its geoscientific, petrophysical and engineering research during the past two years, including analysis of more than 100 wells drilled through the formation by others in the industry, as well as the results of 11 horizontal wells Chesapeake has completed to date, the company believes the Haynesville Shale play will become the largest discovery of natural gas in the U.S. Chesapeake is currently producing approximately 35 mmcfe net per day (45 mmcfe gross) from the play and anticipates reaching at least 75 mmcfe net per day by year-end 2008. Chesapeake is currently using eight operated rigs to further develop its 450,000 net acres of Haynesville Shale leasehold and anticipates operating at least 12 rigs by year-end 2008. The company continues to acquire leasehold in the play with its 20% partner, Plains Exploration & Production Company (PXP).

China Eyeing Chesapeake Energy CHK Shale Assets

These Shale Plays are hot, hot, hot, especially the Haynesville Shale!

Reuters is reporting the China National Petroleum Corporation CNPC is eyeing some of Chesapeakes Shale assets. As you know, CHK has gone from $75 to all the way down $45 in three weeks and is currently trading at $49. They could be sitting on as much as 16 Billion in Haynesville Shale assets which is only a fraction of their Natural Gas portfolio and acreage position.

Chesapeake is looking to raise as much as $5 billion this year from selling minority stakes in its Arkansas and Pennsylvania shale gas properties, the South China Morning Post reported on Monday, citing unnamed market sources.
Energy companies are spending heavily to lock up acreage in hot shale plays, where oil and natural gas are trapped in layers of rock. Record energy prices and technology such as horizontal drilling have made retrieving hydrocarbons from shale profitable.


http://www.reuters.com/article/marketsNews/idINHKG8501520080728?rpc=44

Haynesville Shale Stocks Reversing HK, CHK, GDP, XTO

Last week their was a huge build in natural gas inventories.....up 16-20% then expected.

All of the Natural Gas stocks got hammered off of this news. Today they opened up weaker but now have reversed and seem to be wanting to break out.

Watch these Haynes Shale Stocks

PetroHawk Energy HK - Capitulated in the $36 area last week.....now reversing above $39 this morning.

Goodrich Petroleum GDP - Still continues to go down.....from $75 down to $57 in a week. GDP is bouncing off the lows this morning and is currently trading at $58.50

XTO Energy XTO - This stock has gotten hammered for being one of the bigger natural gas stocks. After hitting $53 Thursday....XTO has reversed back to $56. XTO is involved in alot of shales including the Bakken Shale of North Dakota, Marcellus Shale in Pennsylvania, and the Barnett Shale in Texas

Chesapeake Energy CHK - Chesapeake Energy has been smashed all the way down to $52 on Thursday....even after this company Announced that they will be selling their Woodford Shale acres for Beyond Petroleum ( BP ). CHK has been bouncing this morning above $55.

If you have been waiting for a dip in these stocks for awhile now.....here is your chance to invest in specifically the Haynesville Shale or many other shale plays by buying XTO or CHK

Woodford Shale -Chesapeake Energy CHK Sells

Chesapeake has announced today that they will be selling 90,000 acres of their Woodford Shale portfolio to BP for 1.75 Billion.

CHK will use the money for other shale plays including The Marcellus Shale, Haynesville Shale.

The Woodford Shale is located in Oklahoma and is considered a medium range Shale Gas Play. I would probably compare it to the Utica Shale although the Utica is still very young.

For more on the Haynesville Shale and companies drilling there, visit http://haynesvilleshales.com

Haynesville shale Meeting - Ringgold

A speaker from Chesapeake Energy CHK will be speaking at a information meeting at the Ringgold school complex Wednesday Night.

http://www.oilshalegas.com/haynesvilleshale.html