Shares of Chesapeake Energy Corp CHK climbed in early trading on Friday, as oil prices moved slightly higher after the Personal Consumption Expenditures (PCE) Price Index report showed lower inflation in August than expected. Gas prices are likely to rise over the next few years, and the company will be the largest natural gas producer following the merger with Southwestern Energy Co SWN, according to Roth Capital Partners. Analyst Leo Mariani initiated coverage of Chesapeake Energy with a Buy rating and pr ...

Hart-Scott-Rodino Act waiting period has expired Company to be rebranded as Expand Energy and trade on NASDAQ under "EXE" ticker symbol OKLAHOMA CITY and SPRING, Texas, Sept. 26, 2024 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ: CHK) and Southwestern Energy Company (NYSE: SWN) today announced the waiting period in connection with the companies' pending combination under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR Act") has expired. The companies expect the merger to close in the ...

Chesapeake Energy Corporation (CHK) has announced that the pending merger with Southwestern Energy (SWN) is anticipated to close early in the fourth quarter of this year. Chesapeake Energy had announced the acquisition of rival natural gas firm Southwestern Energy in an all-stock deal, in January 2024. The deal was valued at approximately $7 billion. The acquisition was originally anticipated to be closed by the end of the second quarter. However, the U.S. Federal Trade Commission's (FTC) request for additi ...

When the market gets too long or too short in any given set of stocks or asset classes, investors must eventually watch out for the changing tides. Just like anything that is priced openly to the public, stocks that run out of buyers will need to see lower prices to attract new business, just like stocks that run out of sellers need to see higher prices instead. Today, a few stocks stand out as potential names that could be running out of buyers soon. The catalyst to bring higher prices to them and shake ol ...

A commodity cycle is underway again, and this time, Warren Buffett is backing up the new views on the energy sector's potential rally higher. According to the CME's FedWatch tool prediction for September 2024, interest rate cuts could be underway soon. If the Fed ends up delivering these cuts, demand for oil due to business activity could soon soar. More than that, recovering economies like China, which represented roughly 40% of global oil demand preCOVID, could help deliver the sort of tailwinds that the ...

When stocks accumulate a significant short interest, it typically creates the risk of a short squeeze. When investors sell a stock short, they have to borrow and sell it to profit from their bearish views. However, closing the position involves buying back the stock. Knowing this, investors can probably guess what happens when short sellers need to close their positions all at once. The value of the underlying stock might tick a bit higher on good news or developments, triggering short sellers to get out of ...

Investors in Chesapeake Energy Corporation (CHK) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $40 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It ...

Chesapeake Energy Corporation (NASDAQ:CHK) Q2 2024 Earnings Conference Call July 30, 2024 9:00 AM ET Company Participants Chris Ayres - Vice President, Investor Relations and Treasurer Nick Dell'Osso - President and Chief Executive Officer Mohit Singh - Executive Vice President and Chief Financial Officer Josh Viets - Executive Vice President and Chief Operating Officer Conference Call Participants Bertrand Donnes - Truist Douglas Leggate - Wolfe Research Neil Mehta - Goldman Sachs Zachary Parham - JPMorgan ...

Chesapeake Energy (CHK) came out with quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -50%. A quarter ago, it was expected that this oil and gas company would post earnings of $0.64 per share when it actually produced earnings of $0.56, delivering a surprise of -12.50%. Over the last four quarters ...

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis for the period, highlighting financial performance, liquidity, and operational results [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for the six months ended June 30, 2024, report a **net loss of $201 million**, a significant decrease from the prior year's net income, primarily due to lower commodity prices and asset divestitures Condensed Consolidated Statements of Operations Highlights (Six Months Ended June 30) | Metric | 2024 ($ million) | 2023 ($ million) | | :--- | :--- | :--- | | **Total revenues and other** | 1,586 | 5,261 | | **Income (loss) from operations** | (262) | 2,337 | | **Net income (loss)** | (201) | 1,780 | | **Diluted earnings (loss) per share** | (1.53) | 12.36 | Condensed Consolidated Balance Sheet Highlights | Metric | June 30, 2024 ($ million) | Dec 31, 2023 ($ million) | | :--- | :--- | :--- | | **Total current assets** | 2,013 | 2,609 | | **Total assets** | 13,608 | 14,376 | | **Total liabilities** | 3,238 | 3,647 | | **Total stockholders' equity** | 10,370 | 10,729 | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) | Metric | 2024 ($ million) | 2023 ($ million) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | 761 | 1,404 | | **Net cash provided by (used in) investing activities** | (640) | 848 | | **Net cash used in financing activities** | (179) | (1,469) | | **Net increase (decrease) in cash** | (58) | 783 | [Note 2. Natural Gas and Oil Property Transactions](index=11&type=section&id=Note%202.%20Natural%20Gas%20and%20Oil%20Property%20Transactions) The company is progressing with its all-stock merger with Southwestern Energy, while having completed the divestiture of its Eagle Ford assets in 2023, generating over **$3.5 billion** in proceeds - Entered into an all-stock merger agreement with Southwestern Energy Company, targeted to close in the second half of 2024, subject to regulatory approvals, with stockholders from both companies approving the merger on June 18, 2024[107](index=107&type=chunk) - Completed the sale of Eagle Ford assets in three transactions during 2023 to WildFire Energy I LLC, INEOS Upstream Holdings Limited, and SilverBow Resources, Inc., resulting in gains of approximately **$337 million**, **$470 million**, and **$140 million**, respectively[108](index=108&type=chunk)[109](index=109&type=chunk)[112](index=112&type=chunk) - Received the first installment payments for deferred consideration from the WildFire and INEOS Energy divestitures during the current period[108](index=108&type=chunk)[109](index=109&type=chunk) [Note 4. Debt](index=13&type=section&id=Note%204.%20Debt) As of June 30, 2024, total long-term debt, net, was approximately **$2.02 billion**, with the Credit Facility amended to increase commitments to **$2.5 billion** and no outstanding borrowings Long-Term Debt Summary (as of June 30, 2024) | Debt Instrument | Carrying Amount ($ million) | Fair Value ($ million) | | :--- | :--- | :--- | | 5.50% senior notes due 2026 | 500 | 495 | | 5.875% senior notes due 2029 | 500 | 494 | | 6.75% senior notes due 2029 | 950 | 952 | | **Total long-term debt, net** | **2,021** | **1,941** | - In April 2024, the Credit Facility was amended to increase aggregate commitments to **$2.5 billion** and the borrowing base to **$3.5 billion**, maturing in December 2027[119](index=119&type=chunk)[203](index=203&type=chunk) - As of June 30, 2024, there were no outstanding borrowings under the Credit Facility, with approximately **$2.5 billion** available[119](index=119&type=chunk) [Note 9. Equity](index=19&type=section&id=Note%209.%20Equity) The company paid total dividends of **$172 million** during the first six months of 2024, with no share repurchases in the current period Dividends Paid Per Share | Quarter | Base Dividend ($) | Variable Dividend ($) | Total Per Share ($) | | :--- | :--- | :--- | :--- | | **2024 Q1** | 0.575 | — | 0.575 | | **2024 Q2** | 0.575 | 0.14 | 0.715 | | **2023 Q1** | 0.55 | 0.74 | 1.29 | | **2023 Q2** | 0.55 | 0.63 | 1.18 | - No shares were repurchased during the six months ended June 30, 2024. In the prior year period, **2.2 million shares** were repurchased for an aggregate price of **$175 million**[152](index=152&type=chunk) [Note 11. Derivative and Hedging Activities](index=22&type=section&id=Note%2011.%20Derivative%20and%20Hedging%20Activities) The company's derivative portfolio, primarily natural gas contracts, had a net asset fair value of **$370 million** as of June 30, 2024, used to mitigate commodity price exposure Fair Value of Derivative Instruments (as of June 30, 2024) | Derivative Type | Notional Volume (Bcf) | Fair Value ($ million) | | :--- | :--- | :--- | | Fixed-price swaps | 259 | 60 | | Collars | 518 | 256 | | Basis protection swaps | 425 | 21 | | **Total natural gas** | **1,202** | **337** | | **Contingent Consideration** | N/A | **33** | | **Total estimated fair value** | | **$370** | - The company does not designate its derivative instruments for hedge accounting treatment; all changes in fair value are recognized in earnings[167](index=167&type=chunk) - A contingent consideration arrangement from the SilverBow Eagle Ford sale could provide up to an additional **$50 million** based on WTI NYMEX prices, with an unrealized gain of **$21 million** recorded during the current period[168](index=168&type=chunk) [Note 12. Investments](index=24&type=section&id=Note%2012.%20Investments) The company holds a **35% interest** in a joint venture for a natural gas gathering pipeline and CCUS project in the Haynesville Shale, with a carrying value of **$280 million** - The investment is for a new natural gas gathering pipeline with **1.7 billion cubic feet per day** initial capacity and a CCUS project capable of capturing up to **2.0 million metric tons of CO2 per annum**[178](index=178&type=chunk) - The carrying value of the investment increased to **$280 million** as of June 30, 2024, from **$238 million** at year-end 2023[178](index=178&type=chunk) - The company estimates an additional **$75 million** commitment to the project[178](index=178&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's strategic focus on Marcellus and Haynesville natural gas assets, the pending merger with Southwestern Energy, and financial performance impacted by lower commodity prices and asset divestitures - The company's strategy is focused on responsible development of its Marcellus and Haynesville natural gas assets, aiming for high cash returns, operational efficiency, and improved ESG performance[182](index=182&type=chunk) - ESG goals include achieving **net-zero GHG emissions (Scope 1 and 2) by 2035**, reducing methane intensity to **0.02% by 2025**, and GHG intensity to **3.0 metric tons CO2e per thousand barrels of oil equivalent by 2025**[183](index=183&type=chunk) [Recent Developments](index=26&type=section&id=Recent%20Developments) Recent developments include the pending all-stock merger with Southwestern Energy, a **20-year LNG export deal** with Delfin LNG and Gunvor Group, and continued investment in the Momentum Sustainable Ventures project - Announced an all-stock merger with Southwestern Energy, approved by stockholders of both companies and expected to close in the second half of 2024[186](index=186&type=chunk) - Entered into a **20-year LNG export deal** to purchase approximately **0.5 million metric tons per annum** from Delfin LNG and sell to Gunvor Group, with a targeted start date in 2028[190](index=190&type=chunk) - Continued investment in the Momentum Sustainable Ventures project, with total capital contributions reaching **$275 million** through the end of the current period[193](index=193&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position of **$3.5 billion**, comprising **$1.0 billion** in cash and **$2.5 billion** in unused Credit Facility capacity, with projected 2024 capital expenditures between **$1.2 billion and $1.3 billion** - Total available liquidity was **$3.5 billion** as of June 30, 2024, including **$1.0 billion** cash and **$2.5 billion** available under the Credit Facility[197](index=197&type=chunk) - The 2024 capital expenditure budget is projected to be between **$1.2 billion and $1.3 billion**[206](index=206&type=chunk) - Cash provided by operating activities decreased from **$1,404 million** in the prior period to **$761 million** in the current period, primarily due to lower natural gas prices and decreased volumes from divestitures[209](index=209&type=chunk) - Capital expenditures decreased in the current period due to reduced drilling and completion activity in the Marcellus and Haynesville areas, as well as the Eagle Ford divestitures[3](index=3&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) The company's results for the first half of 2024 were significantly impacted by lower commodity prices and the 2023 Eagle Ford asset divestiture, leading to a **$1,135 million** decrease in total sales Natural Gas, Oil and NGL Sales ($ million) | Period | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $378 | $649 | ($271) | | **Six Months Ended June 30** | $967 | $2,102 | ($1,135) | - The decrease in sales for the six months ended June 30, 2024, was driven by a **$402 million** decrease from lower prices, a **$577 million** decrease from the Eagle Ford divestitures, and a **$156 million** decrease from lower volumes in Marcellus and Haynesville[16](index=16&type=chunk) Total Production Expenses ($ million) | Period | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Three Months Ended June 30** | $49 | $89 | ($40) | | **Six Months Ended June 30** | $108 | $220 | ($112) | - General and Administrative (G&A) expenses increased to **$94 million** for the six-month period from **$66 million** in the prior period, primarily due to a decrease in producing well count following the Eagle Ford divestitures[27](index=27&type=chunk) - The company recorded a total gain on natural gas and oil derivatives of **$161 million** for the six months ended June 30, 2024, compared to a gain of **$1,089 million** in the prior year period[26](index=26&type=chunk) [Forward-Looking Statements](index=36&type=section&id=Forward-Looking%20Statements) This section details forward-looking statements and associated risks, including those related to the Southwestern Merger, commodity price volatility, competition, and regulatory initiatives - Forward-looking statements cover expectations regarding the Southwestern Merger, impacts of global economic and geopolitical conditions, commodity prices, and ESG initiatives[35](index=35&type=chunk) - Key uncertainties include the volatility of natural gas, oil, and NGL prices; competition; significant capital required to replace reserves; and risks associated with drilling and operations[36](index=36&type=chunk) - Specific risks related to the pending Southwestern Merger are detailed, including failure to obtain regulatory approvals, integration challenges, and potential loss of key personnel[39](index=39&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks stem from commodity price volatility and interest rate changes, with hedging strategies employed to manage commodity price exposure - The company's primary market risks are from fluctuations in natural gas, oil, and NGL prices, and interest rates[233](index=233&type=chunk) - A **10% change** in natural gas prices would have changed revenues by approximately **$97 million** in the first six months of 2024 (pre-hedging); a **10% increase** in forward prices would decrease the value of gas derivatives by approximately **$175 million**, while a **10% decrease** would increase their value by approximately **$178 million**[236](index=236&type=chunk) - Interest rate risk is currently low as there were no outstanding borrowings under the floating-rate Credit Facility as of June 30, 2024[227](index=227&type=chunk)[237](index=237&type=chunk) [Item 4. Controls and Procedures](index=39&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed the effectiveness of disclosure controls and procedures as of June 30, 2024, with no material changes to internal control over financial reporting during the quarter - An evaluation of disclosure controls and procedures, with the participation of the CEO and CFO, concluded that they were effective as of June 30, 2024[229](index=229&type=chunk) - No material changes were identified in the company's internal control over financial reporting during the quarter[211](index=211&type=chunk) [PART II. OTHER INFORMATION](index=40&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section covers legal proceedings, a reference to comprehensive risk factors, and disclosures regarding unregistered sales of equity securities and use of proceeds [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings, with two merger-related lawsuits dismissed, and management anticipates no material adverse effect on financial position - The company is involved in various legal proceedings arising in the ordinary course of business[212](index=212&type=chunk) - Two lawsuits filed by purported stockholders in connection with the Southwestern Merger were dismissed in June 2024[129](index=129&type=chunk)[246](index=246&type=chunk) - Management does not expect any pending or threatened lawsuits to have a material adverse effect on the company's financial condition or results of operations[213](index=213&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the comprehensive risk factors detailed in the company's 2023 Form 10-K, which could materially impact its business and financial results - The report directs readers to the "Risk Factors" section in Item 1A of the company's 2023 Form 10-K for a comprehensive description of business risks[215](index=215&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities and no common stock repurchases during the quarter ended June 30, 2024 - There were no unregistered sales of equity securities[250](index=250&type=chunk) - The company did not repurchase any shares of its common stock during the quarter ended June 30, 2024[216](index=216&type=chunk)