Chesapeake Energy

Here is information provided by Chesapeake Energy in an Oct. 10 press release. The company is planning to discuss the topics below at its 2008 Investor and Analyst Meeting on Oct. 15 and 16.

The investor and analyst meeting is scheduled to be Web cast live from 2:30-5:45 p.m. on Oct. 15. On Oct. 16, the meeting will be on the Web from 8:30 a.m. to 1 p.m.

Replay of the meeting will happen for 30 days on the Web. The Web cast can be accessed by going to Chesapeake's Web site and selecting the "News & Events" section.

A slide show presentation is also available on the company's Web site.


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A) Financial Topics --

a. Sale of Leasehold and Production Properties:

The company plans to generate cases proceeds of $2.5- $3 billion in the fourth quarter from the sale of: a 25 percent interest in the Marcellus Shale; leasehold and associated production in three other areas; and a fourth volumetric production payment.

"Raising additional funds from asset sales in this environment will provide the company with more financial flexibility and the ability to either reduce debt more than previously planned or to potentially repurchase common stock," Chesapeake states in the press release.



b. Capital Spending:

In response to lower natural gas prices, "the company intends to further reduce its capital expenditures budget by approximately $1.5 billion in 2009 and 2010 through a combination of reduced drilling and lower leasehold expenditures," the company states.


B) Operational Highlights

As of Sept. 30, the company had estimated proven reserves of 12.1 trillion cubic feet of natural gas equivalent.
Chesapeake now uses 145 drilling rigs. By year's end, the company expects to operate 135-140 rigs, "and expects to keep its rig count flat to down in 2009 and 2010," the company states.


Side note, as of 12:30 p.m., Chesapeake's stock was 2.07 higher, a gain of 10.25 percent.

The company's 52-week range is, 11.99 - 74.00.

On Oct. 13, Howard Weil downgraded Chesapeake's stock from Market Outperform to Market Perform.

Jefferies & Co. rates Chesapeake's stock at a buy rating and with a $54 price target.