Wednesday, June 4, 2014

Do Surging Natural Gas Prices Solve Chesapeake Energy Corporation's Problems?


Based on first-quarter earnings, the surge in natural gas prices cured a lot of the ailments hurting Chesapeake Energy (NYSE: CHK  ) over the last couple of years. According to the company, it remains the second-largest producer of natural gas and now the tenth largest producer of oil and natural gas liquids. So while the shift to liquids continues to gather steam, the company remains solidly reliant on the price of natural gas to achieve outsized returns for shareholders.

With the large valuations obtained by smaller natural gas focused producers Range Resources  (NYSE: RRC  ) and Antero Resources  (NYSE: AR  ) , it is clear that shifting away from natural gas isn't a requirement for success.

Read the full article here.


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