Chesapeake Energy Still a Buy

Tags: chk
4 Nov 4:02am
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Oklahoma-based Chesapeake Energy Corp. (CHK) is an independent oil and gas company engaged in the acquisition, development and production of onshore U.S. natural gas resources. The company has grown rapidly and now ranks as a leading U.S. natural gas producer.

At the end of the quarter, Chesapeake's proved reserves stood at approximately 12.1 Tcfe, compared to 12.2 Tcfe at the end of the second quarter of 2008. During the first nine months of the year, the company replaced its 630 Bcfe of production with an estimated 1.83 Tcfe of new proved reserves for a reserve replacement rate of 290%. At the end of the third quarter of 2008, debt-to-capitalization ratio stood at 46.6%, compared to 55.9% at the end of the second quarter of 2008.

Our Buy recommendation remains unchanged, though we have lowered our estimates and price objective to reflect a new commodity-price deck.

Read the full analyst report on CHK




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