Chesapeake Sells Debt; Natural Gas Prices Rise (CHK)
Natural gas prices are up 4.3% today, at $2.54/thousand cubic feet, after falling to near $2.45 yesterday. The market for natural gas hasn’t changed that much, with warm weather still prevailing across much of the US and driving down demand…
Natural gas prices are up 4.3% today, at $2.54/thousand cubic feet, after falling to near $2.45 yesterday. The market for natural gas hasn’t changed that much, with warm weather still prevailing across much of the US and driving down demand for heating.
Today’s move up is the result of short covering following the recent decline in natural gas prices. Another factor is likely the cutback in natural gas production announced earlier this year by Chesapeake Energy Corp. (NYSE: CHK). The company announced yesterday that it would sell at least $10 billion in assets to bring its cash flow in line with its capital spending.
Chesapeake also sold $1.3 billion in senior unsecured notes this morning. The notes are due in 2019 and carry a coupon of 6.775%. The notes are rated ‘Ba3’ by Moody’s and ‘BB+’ by S&P.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
