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Gold/Mining/Energy : Chesapeake Energy CHK
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To: Gabor who wrote (568)9/14/1999 10:09:00 PM
From: Ed Ajootian  Read Replies (1) of 726
 
Chesapeake Energy's McClendon on Company Outlook: Comment

Oklahoma City, Sept. 14 (Bloomberg) -- Aubrey McClendon, chairman and chief executive of Chesapeake Energy Corp., talks about the recent moves in Chesapeake's stock price and the company's outlook. Chesapeake shares, which traded above $20 a share in early 1997, dipped to 5/8 in February and closed at 3 3/8 today. ``We've been involved in a precipitous decline and an equally dramatic upturn. We're one of the most leveraged to natural gas prices, and we're in position to take advantage of that. ``We've built our company for the relentless increase in (gas) demand that we're seeing. They're not building any more nuclear plants, and I don't see them damming any more rivers. Demand for all additional electric capacity will be met by building natural gas-fired plants.'

On Chesapeake's situation earlier this year, when energy prices were low and Chesapeake stock touched an all-time low: ``We did look around to cut expenses. We run things pretty close to the bone. ``We knew we didn't have any debt that was due for at least five years, and some of it's not due for 14 years. In earlier periods (of low oil and gas prices) it was instructive to see what happened, and so we learned how to structure our assets to get through the tough times. ``A lot of people predicted our demise but they were wrong. We represent great value. I think (the stock price) can triple from here as we move through the next few quarters. ``We were put in the penalty box for our exploration failure in Louisiana, and we're going to play our way out of the penalty box.'

In 1997 Chesapeake took a $236 million asset writedown because some Louisiana properties had not produced oil and natural gas as expected.
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I did not say that heavy hitters were coming into the stock. You need to read the posts very carefully.
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