Research

CHK – is trading at historical lows, but management is confident about their WildHorse acquisition, margins, and transportation

November 19, 2018
  • Chesapeake Energy Corporation (CHK:USA)currently trades at historical lows relative to UAFRS-based (Uniform) Assets, with a 0.2x Uniform P/B, implying bearish expectations for the firm. However, management is confident about their WildHorse asset acquisition, their focus on expanding margins, and their transportation portfolio
  • Specifically, management generated an excitement marker when saying that the synergies in the WildHorse asset acquisition are tremendous. Furthermore, they are confident that most of their capex spend on WildHorse will be focused on expanding margins, and that they will further optimize their transportation portfolio. Moreover, they are confident that they can deliver wells at approximately half the drilling and completion costs