Chesapeake Energy Corporation (NYSE:CHK) announced the expiration and final results of its offers to purchase for cash (the “Tender Offers”) up to $1,200,000,000 aggregate purchase price (exclusive of accrued interest) (the “Aggregate Maximum Purchase Amount”) of the outstanding notes of Chesapeake set forth in the table below (collectively, the “Notes”). As of 11:59 p.m., New York City time, on January 4, 2017 (such date and time, the “Expiration Date”), Chesapeake received valid tenders totaling approximately $554.1 million aggregate principal amount of the Notes.
Chesapeake accepted for purchase approximately $552.6 million aggregate principal amount of Notes that were validly tendered and not validly withdrawn as of 5:00 p.m., New York City time, on December 19, 2016 (the “Early Tender Date”) for an aggregate consideration of approximately $578.5 million, excluding accrued and unpaid interest. The early settlement date for such notes occurred on December 21, 2016. Chesapeake is accepting the additional $1.5 million aggregate principal amount of the Notes that were validly tendered and not validly withdrawn after the Early Tender Date for aggregate consideration of approximately $1.5 million, excluding accrued and unpaid interest. Chesapeake expects to make payment for the Notes accepted for purchase in same-day funds on January 6, 2017.
Deutsche Bank Securities Inc. acted as the dealer manager in the Tender Offers. Global Bondholder Services Corporation served as both the depositary and the information agent for the Tender Offers.
From time to time after completion of the Tender Offers, Chesapeake and its affiliates may purchase additional Notes in the open market, in privately negotiated transactions, through additional tender offers, exchange offers or otherwise, or Chesapeake may redeem Notes that are able to be redeemed, pursuant to their terms. Any future purchases, exchanges or redemptions may be on the same terms or on terms that are more or less favorable to holders of Notes than the terms of the Tender Offers. Any future purchases, exchanges or redemptions by Chesapeake and its affiliates will depend on various factors existing at that time. There can be no assurance as to which, if any, of these alternatives (or combinations thereof) Chesapeake and its affiliates may choose to pursue in the future. (Original Source)
Shares of Chesapeake Energy are currently rising 1.43% to $7.10, or up $0.10 in pre-market trading Thursday. CHK has a 1-year high of $8.20 and a 1-year low of $1.50. The stock’s 50-day moving average is $7.01 and its 200-day moving average is $6.05.
On the ratings front, Chesapeake Energy has been the subject of a number of recent research reports. In a report issued on January 3, RBC analyst Scott Hanold reiterated a Hold rating on CHK, with a price target of $8, which implies an upside of 14% from current levels. Separately, on December 22, KLR Group’s John Gerdes reiterated a Buy rating on the stock and has a price target of $11.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Scott Hanold and John Gerdes have a yearly average return of 6.9% and 6.6% respectively. Hanold has a success rate of 65% and is ranked #152 out of 4369 analysts, while Gerdes has a success rate of 55% and is ranked #515.
Overall, 3 research analysts have rated the stock with a Sell rating, 8 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $7.07 which is 1.0% above where the stock closed yesterday.
Chesapeake Energy Corp. engages as a natural gas and oil exploration and production company. It operates through the Exploration and Production; Marketing, Gathering and Compression segments. The Exploration and Production segment focuses on finding and producing natural gas, oil and natural gas liquids. The Marketing, Gathering, and Compression segment deals with the marketing, gathering, and compression of natural gas, oil, and natural gas liquids primarily from Chesapeake-operated wells.