Where Will Chesapeake Energy Be in 1 Year?
Chesapeake Energy's (NYSE: CHK) stock price is down more than 90% over the past five years. One of the main reasons for that is volatile commodity prices, notably weak natural gas prices -- that commodity has long been the company's focus. However, Chesapeake has decided to keep shifting gears a little bit. Here's what's going on, and what to expect over the next year or so.
At one point, drilling for natural gas was a hot growth market. Chesapeake happily participated, spending to drill new wells and deliver more gas to market. The problem is that now there's an abundance of natural gas supply in the U.S. market, outstripping the infrastructure needed to move it. Moreover, the price of the fuel has remained stubbornly low, well below its peak prices of a few years ago. It's little wonder that a natural gas-focused company like Chesapeake has fallen out of favor on Wall Street.
Image source: Getty Images
Quelle Fool.com