Friday, April 26, 2013

Chesapeake Energy: Biggest Beneficiary Of Higher Natural Gas Prices


As natural gas prices soar this year, Chesapeake Energy (CHK) is likely the biggest beneficiary. The heavily indebted, asset rich firm will make out like a bandit if natural gas prices triple as Jeremy Grantham suggested earlier this month. As Chesapeake was its own worst enemy with an aggressive land acquisition and drilling plan over the last decade, the company might become its own best friend with a scaled back capital spending plan.

After a decade of rapid growth, Chesapeake turned into the largest independent producer of natural gas and a leading landholder in the vast majority of the important shale areas. The company has a leasehold on 15M net acres and has a reserve base of nearly 20 Tcfe.

Read the full article at Seeking Alpha.


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