Chesapeake Energy (
) may be set for a bloodbath after the market closes today, with
its second-quarter earnings report on the docket. Shares are down
about 0.3 percent in the afternoon session Monday.
Currently, analysts are looking for Chesapeake to report EPS of 8
cents on revs of $2.44 billion. For some perspective, earnings will
fall about 90 percent from 76 cents reported in the same period
last year, while revs dip 26.5 percent.
Estimize consensus views paint an even more sobering picture: EPS
of 6 cents on sales of $1.77 billion.
cut its outlook
on Chesapeake earlier, expecting a large reduction in its CapEx
Other updates to watch out for from Chesapeake include verbiage on
the Permian Basin sale, Mississippi Lime joint venture, and other
non-core divestitures. The Permian sale is said to draw about $5
billion for 1.5 million acres.
Data from Streetinsider's
has 10 analysts at Buy, 18 with a Neutral rating, and one at Sell.
The Street's price target average is $26, ranging from $14.50 up to
$42. Over the last year, Chesapeake shares have traded within a
range of $13.31 to $33.87.
One potential positive is the rebound in nat gas prices. From a low
at about $2.25 per mmBtu, the commodity rose to above $3 per mmBtu
at the end of August. Most of the gains were from the abnormally
high temps through much of the U.S. over the summer so far. Any
commentary surrounding that would be an important focal point.
Then, there's Aubrey McClendon. After ceding the Chairman position
earlier this year, some speculate that he might relinquish the CEO
spot as well. McClendon was
to be leveraging future gas and well sales to borrow funds for
personal use. How many loans? About
, according to
Catch Chesapeake earnings news at is breaks at