Hi DD.. Sergio has asked me to moderate this site while he's on vacation. Its not in my nature to be moderate but I'll try. <g>
CHK at 3 5/16th, looks like you have the low of the day buy.. overhead resistance at 4, then visions of 6.
While I personally don't want my gas to rise the CEO's comments look good for the stock..
Chesapeake's Chief Executive Officer, Aubrey K. McClendon, commented, "We are particularly encouraged by our second quarter performance. Chesapeake's gas production increased despite production losses from asset sales, lease operating expenses declined by 15%, our depreciation rate remains among the lowest in the industry, our drilling operations and asset rationalization program are adding value, and most importantly, we were profitable for the first time in the past eight quarters.
With natural gas storage below levels of the previous year for the first time in 30 months, gas deliverability declining by approximately three bcf per day, gas consumption increasing by one bcf per day and record electrical demand requiring the need for increased power generation, we are optimistic about the continued attractiveness of the natural gas industry. Because of Chesapeake's 87% natural gas
reserve concentration, the company's asset value, cash flow and earnings have significant leverage to improving natural gas prices. In fact, for each $0.10 increase in natural gas prices, Chesapeake's annual earnings and cash flow increase by approximately $0.10 per share and net asset value increases by approximately $0.50 per share. We have built a strong natural gas foundation which should provide
continuing improvements in the company's performance during the upcoming quarters and deliver significant increases in shareholder value." |
