Company Update (NYSE:CHK): Chesapeake Energy Corporation Announces Redemption Of 6.5% Senior Notes Due 2017

Chesapeake Energy Corporation (NYSE:CHK) announced that the Company is calling for redemption in full on January 21, 2017 (the “Redemption Date”) all of its outstanding 6.5% Senior Notes due 2017 (the “Notes”). The redemption price for the Notes is equal to the sum of the outstanding principal amount thereof and the make-whole amount, as calculated in accordance with the indenture governing the Notes, plus accrued and unpaid interest thereon to the Redemption Date. The redemption price for each $1,000 principal amount of Notes is $1,056.88, including accrued and unpaid interest.

On the Redemption Date, the redemption price will become due and payable upon each of the Notes then outstanding and, unless the Company defaults in the payment of the redemption price or accrued interest, interest thereon will cease to accrue on and after the Redemption Date and the only remaining right of the holders is to receive payment of the redemption price upon surrender of the Notes. Payment of the redemption price and surrender of the Notes redeemed will be made through the facilities of the Depository Trust Company. (Original Source)

Shares of Chesapeake Energy are currently rising 0.54% to $7.38, or up $0.04 in after-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 $6.54 and its 200-day moving average is $5.87.

On the ratings front, Chesapeake Energy has been the subject of a number of recent research reports. In a report released today, KLR Group analyst John Gerdes reiterated a Buy rating on CHK, with a price target of $11, which represents a potential upside of 48% from where the stock is currently trading. Separately, on December 5, FBR’s Joseph Allman reiterated a Sell rating on the stock.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, John Gerdes and Joseph Allman have a yearly average return of 6.9% and a loss of -7.8% respectively. Gerdes has a success rate of 55% and is ranked #426 out of 4289 analysts, while Allman has a success rate of 37% and is ranked #4078.

Overall, 3 research analysts have rated the stock with a Sell rating, 9 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 $6.92 which is -6.7% under where the stock opened today.

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. 

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