Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: jbe who wrote (48705)	8/1/1999 1:58:00 PM
From: Ditchdigger	Respond to of 95453

CHK is looking pretty interesting to me..here are a couple of snipits from the Q2 press release... "OKLAHOMA CITY, OKLAHOMA, JULY 28, 1999 - Chesapeake Energy Corporation(NYSE: CHK) today reported its second quarter and first half 1999 financial and operating results. For the quarter, Chesapeake generated net income of $8.1 million ($0.04 per common share after accrued preferred dividends), cash flow from operations of $34.7 million ($0.34 per common share), Ebitdda (cash flow from operations plus interest expense) of $54.9 million and revenue of $80.9 million on 33.6 billion cubic feet of natural gas equivalent (bcfe) production. Average prices realized during the quarter were $16.01 per barrel of oil and $1.88 per mcf of natural gas for a gas equivalent price of $2.03 per mcfe. In their conference call they stated the had no existing gas hedges for the rest of 99... ""Chesapeake has hedged approximately 90% of its forecasted oil production for the next 12 months in collar transactions with an average floor of $17.75 and an average ceiling price of $20.25 per barrel. The company is beginning to hedge a portion of its gas production for April - October 2000." "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." "At June 30, 1999, the company's cash balances were $28 million and working capital was $16 million, a $60 million improvement from March 31, 1999." chesapeakeenergy.com NYMEX Henry Hub Natural Gas Price Average 06/01/99-06/30/99---avg. price +++ $2.346 07/01/99-07/31/99---avg. price +++ $2.30 **Seems to me, they are setting up for a very good third Q if NG prices hold in these levels...(when comparing to the realized price of $1.88 in the 2nd Q,with no hedges) Heavy debt,high yield(I think the avg. is around 9.1%-double check me) but fixed,and no principal payments due until 03/ 2004 Opinions? DD ......................comparable numbers from Q1 CHK Info(99Q1)----Ist Q prices realized----avg. oil and gas sales price for CHK (note "previous Q" is 03/98) "Oil and Gas Sales. During the Current Quarter, oil and gas sales increased 3% to $51.8 million from $50.2 million in the Prior Quarter. For the Current Quarter, the Company produced 33.3 billion cubic feet equivalent ("bcfe"), consisting of 1.3 million barrels of oil ("mmbo") and 25.7 billion cubic feet of natural gas ("bcf"), compared to 1.2 mmbo and 15.9 bcf, or 23.0 bcfe, in the Prior Quarter. Average oil prices realized were $10.92 per barrel of oil ("bo") in the Current Quarter compared to $14.84 in the Prior Quarter, a decrease of 26%. Average gas prices realized were $1.48 per thousand cubic feet ("mcf") in the Current Quarter compared to $2.06 per mcf in the Prior Quarter, a decrease of 28%." "For the Current Quarter, the Company realized an average price of $1.56 per thousand cubic feet equivalent ("mcfe"), compared to $2.19 per mcfe in the Prior Quarter. The Company's hedging activities resulted in increased oil and gas revenues of $0.4 million, or $0.01 per mcfe, in the Current Quarter, compared to increases in oil and gas revenues of $1.8 million, or $0.08 per mcfe, in the Prior Quarter."