What to Do About Chesapeake Energy’s Wild Two Weeks
Chesapeake Energy (NYSE: CHK) surged 15.73% on Monday, September 16th as a result of strikes that knocked out half of Saudi Arabian oil production. The stock proceeded to fall around 33% from that high over the next two weeks after news that oil production would return to previous levels by the end of September. The oil and gas exploration and production company now trades more than 65% below where it was just one year ago. Can Chesapeake get back on its feet after the Saudi setback, or is the company's balance sheet too weak for investment consideration?
Source: Getty Images.
Chesapeake used to be a dominant pure-play natural gas producer. Not long ago, Chesapeake was the second-largest natural gas producer in the United States but has since fallen to sixth place as the company seeks a new direction. Chesapeake has long tried to increase its exposure to oil due to years of low natural gas prices that left Chesapeake unprofitable and bloated with debt.
Source Fool.com
