- Chesapeake Energy (CHK -0.8%) has turned lower after a solid open that followed better than expected Q2 earnings, as investors apparently turn negative on plans to cut its rig count and bring fewer wells into production this year.
- "We suspect Chesapeake may cut back activity in the relatively gassy North Eastern Appalachia, Haynesville and (to a lesser extent) Mid-continent regions," Barclays (LON:BARC) analysts say.
- Q2's "overall production [was] light on natural gas with slight crude miss... EPS beat and production ramping in July and expected to increase through [year-end] after big Q2 spud totals," Wells Fargo (NYSE:WFC) writes. "While [CHK] continues to execute, we still feel a transformational event/acquisition is needed for shares to get sustained traction."
- Separately, CHK discloses that the Department of Justice closed an investigation into how the company accounted for oil and natural gas assets without taking any enforcement action; CHK shares plunged more than 9% on Sept. 29 a year ago after disclosing a Justice Department subpoena in the case.
- Now read: Chesapeake Energy's Bumpy Road Ahead
Original article