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Gold/Mining/Energy : Chesapeake Energy CHK -- Ignore unavailable to you. Want to Upgrade?

To: John Romeo who wrote (510)	5/19/1999 12:06:00 AM
From: Ed Ajootian	Read Replies (3) \| Respond to of 726

John, Not sure about the hedging. With all the debt they have I believe they have to hedge a fair amount of their production. The bonds trade on the NYSE; not sure how to get a quote other than look in the WSJ. They were around 90 last I looked. The preferred is also on the NYSE, ticker on Yahoo is CHK_P. This is a good buy at under $18 IMO. It earns a $3.50/yr. dividend which is currently not being paid due to bank restrictions. With nat. gas prices recovering they eventually are gonna get back into the point where they will have to start paying these deferred dividends off. I own a small amount of the preferred. I never did buy any of the common. They are just too strapped buy their massive interest expense to be able to do much in the way of developing their properties. I have instead bought companies such as Meridian Resources (TMR) and Comstock Resources (CRK), who, while also heavily leveraged, at least have a little slack so they can go for the gusto a bit. CHK certainly is a fascinating play on nat. gas prices though.