Stock Update (NYSE:CHK): Chesapeake Energy Corporation Announces Private Placement Of $850 Million Of Convertible Senior Notes

Chesapeake Energy Corporation (NYSE:CHK) announced that it has commenced a private placement to eligible purchasers of $850 million aggregate principal amount of convertible senior notes due 2026. The notes will be convertible, under certain circumstances, into cash, Chesapeake common stock or a combination of cash and Chesapeake common stock, at Chesapeake’s election.

Chesapeake intends to use the net proceeds from the offering for general corporate purposes, which may include debt repurchases and the repayment of its credit facility and senior notes with near-term maturities as they become due. The company also intends to grant the initial purchasers of the proposed offering a 30-day option to purchase up to an additional $150 million aggregate principal amount of notes. (Original Source)

Shares of Chesapeake Energy are currently trading at $6.34, down $0.41 or -6.15%. CHK has a 1-year high of $9.55 and a 1-year low of $1.50. The stock’s 50-day moving average is $6.49 and its 200-day moving average is $5.17.

On the ratings front, CHK stock has been the subject of a number of recent research reports. In a report issued on September 26, Nomura analyst Matthew Johnston reiterated a Sell rating on CHK, with a price target of $17.00, which implies an upside of 152% from current levels. Separately, on September 13, FBR’s Joseph Allman initiated coverage with a Sell rating on the stock and has a price target of $5.00.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Matthew Johnston and Joseph Allman have a total average return of 3.6% and -10.1% respectively. Johnston has a success rate of 45% and is ranked #1437 out of 4181 analysts, while Allman has a success rate of 31% and is ranked #3995.

Overall, 5 research analysts have rated the stock with a Sell rating, 5 research analysts have assigned a Hold rating and 4 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 $5.33 which is -21.0% under 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. 


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