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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (23530)	3/11/2006 2:44:49 PM
From: Spekulatius	Respond to of 78958

Madharry, yes i have looked at CHK's presentations. As long as NG prices stay high, CHK has the means to produce a lot of value for shareholder. I did notice a few things on the website: 1) Their charts stop at 7$ MCFE pricing - spot is currently lower than that. 2) When i compare earnings estimates for the same pricing in 2006 and 2007 i notice that CHK earnings will be quite a bit lower at the same price points. This is due to increasing costs. Prices are made a the margin. I predict that if we see 5$ NG (which I think is quite probable) reserves in the ground will be worth no more than 2$. The high prices of the past did have an impact when i look at the injection/draw numbers and inventory. the demand /supply balance has shifted due to obvious drilling response and demand destruction. This could drive NG prices quite a bit lower during this summer. Yes next year is another game but this is a long time to go.