Chesapeake’s 2014 Laser Focus: Liquids and Continued Fire Sales

Chesapeake Energy is presenting at the 42nd Annual Howard Weil Energy Conference this week in New Orleans. As part of their presentation they released a new PowerPoint slide deck (copy embedded below). What does it show? Liquids liquids liquids. Chesapeake has its sights set on producing more liquids as it’s ticket to financial health. The presentation also reveals they will continue to shed “noncore assets and noncore affiliates.” That is, “Watch out below–more ballast coming over the side!” as Chessy will continue to dump divisions and subsidiaries in an effort to prop up the stock price and make bossman corporate raider Carl Icahn happy.

The slide deck is quite revealing and loaded with good information. We learn, for example, that Chessy is spending less than half in capital expenditures on drilling this year than they did just two years ago. First we’ll give you some of our insights and point out our favorite slides and what they reveal, then we’ll share SNL Financial’s take on the presentation. Finally, we’ve embedded the presentation itself so you can peruse it for yourself. The flavor and tone of the presentation is that Chessy is (now) fiscally disciplined and on track to turn the company around and make it profitable. Not mentioned anywhere in the presentation is the 800-pound gorilla: the lawsuits filed and investigations launched into Chesapeake’s alleged screwing of landowners out of royalty payments, which (if found true) will quickly derail all of their best-laid plans to make Icahn even more rich…

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