JN: Natural Gas Price Decline Severely Hurts Chesapeake Energy Corporation
Moody’s Investors Service said that Chesapeake Energy Corporation (NYSE:CHK) should put up for sale at low as $7 billion in assets during 2012 to evade the risk of violating the terms of its revolving credit facility. Natural gas prices that have fallen sharply this year played a key role in hurting the Oklahoma City oil and Natural Gas Company, as production boomed and a mild winter cut demand.
The energy giant reduced some natural gas production in the first quarter and obtained a $4 billion term loan earlier in May. The company also sells several assets in expectations to generate in a range of $9.5 billion to $11 billion to help with expenses as it continues to shift away from natural gas to production of oil and other energy-related liquids.
According to the latest closing data, Chesapeake Energy Corporation (NYSE:CHK) shares rose +2.80% to settle at price $16.90. Intraday trading appeared in a range of $15.81 – $17.13 while in period of a year the stock has floated within a range of $13.32 – $35.75. The last session’s volume of 35.19 million shares competed with an average daily trading volume of 46.98 million shares.
Let’s have look at its direct competitor, Anadarko Petroleum Corporation (NYSE:APC) shares were down -1.99% to close at $61.00. The price was recorded in a range of $59.56 – $62.44 throughout the last trading session while in period of 12 months shares have been floating between $57.11 and $88.70. The last session’s volume of 6.42 million shares competed with an average daily trading volume of 4.44 million shares.
Another competitor, BP plc (ADR) (NYSE:BP) shares in last session were -1.51% down breakeven line and closed at $36.46. The stock in last session traded in a range of $36.25 – $37.14 while in period of a year the stock floated within a range of $33.62 – $48.34. The last session’s volume of 10.85 million shares competed with an average daily trading volume of 6.66 million shares.
Turning to rival ConocoPhillips (NYSE:COP), traded up +0.23% and price moved to $52.16. Intraday trading recorded price in a range of $51.34 – $52.64 while in 52 weeks price has been floating within a range of $50.66 – $80.13. The last session’s volume of 12.16 million shares competed with an average daily trading volume of 11.87 million shares.
