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

To: Spekulatius who wrote (25605)	12/28/2006 5:54:08 AM
From: Madharry	Respond to of 78669

re chk I went through their latest presentation and I decided I no longer care so much about the reserve issue. Whether its costing them $2.50 or $3.00 to find the gas its still highly profitable at the margins if they are selling it for $7.50+, and I agree with them that more likely than not the price of natural gas is more likely up than down over the next decade so im happy to invest in a company that strives to increase their reserves. perhaps the difference in cash flow that you are finding its that that they are making more expenditures to lock up non conventional acerage which I speculate takes longer to bring to a proved reserve category. Bottom line if you believe the peak oil theory at some point $10 gas will be the norm and this company should be thriving.

To: Spekulatius who wrote (25605)	2/6/2007 12:09:19 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78669

CHK- reserve estimates are out and don't look good: biz.yahoo.com 10K 2005 373M shares 7.5TCFE gas reserves Y2006 467M shares 9.0TCFE gas reserves Sharecount up 25% YoY, reserves up 20%. Their debt is up somewhat too YoY, even after for accounting the proceeds from the last share issue. That's all one needs to know about CHK, IMO as far as creating shareholder value is concerned. Of course Wall Street loves them since they generate a steady stream of commissions with their deb/preferred share and share issues.