Chesapeake Energy Corporation continuously following a declining trend, as the oil prices are showing a downward deviation, no improvement is observed, since the 1st quarter of 2015.
In the starting of 2015 the oil price showed some recovery during the first quarter but after that followed the same declination trend. All the companies related to oil field are trying hard to bear cash flow positions but its seem to be very difficult for the time being and stop their investment and operational projects, as oil prices are not showing any kind of improvement. Currently Chesapeake Energy Corporation (NYSE:CHK) is also suffering from the same condition, as it is use to of it.
It is observed that CHK stock has showed a downward steep by 59.27 % until now and the company is witnessed to have suffered a fall by 69.91 percent in the span of 12 months, making the stocks to close with a 2.56 % decline at $8 on Wednesday last week. Recently the stock showed its lowest declination till $6.96 against its lowest level since 2003. The market capitalization of the energy corporation positioned at $5.46 billion strongly lower than past year’s figure of $18 billion.
Financial quarterly results of the gas and oil company regarding the second quarter of 2015 imparted no precaution net for its institutional investors. The organization commenced 2015 with $4.1 billion in terms of cash account but during the year interval ,oil recession knock it down to $2 billion. Its capital expenses level slides by 45 % to $3.58 billion from $5.2 billion this year. The association bear the 1st six months of the year by spending half of its cash. The reduction of operational expense from $3.25 billion to $2.16 billion year over year, hasn't made any benefit to them, however it reported a total loss of $4.10 billion, a disappointing fall against their $191 billion which is the last year’s reported earning.
With respect to research report this week, market specialists from Jefferies research firm recommended a lowered target price for Chesapeake energy corporation to $6 from $8, while assigning an underperform ratings. Another very well known research firm, Bernstein suggest the outperform rating and put forward higher target price to $18 indicating the upward steep to the potential by 130 %. Currently the company positioned at the price target of $11.69 on the consensus basis according to the upward potential by 51.4 % on the stock of the firm. Out of 36 specialist, broadcasting the stock, 8 suggest buy, 7 commend a sale and a hold recommended by 21 market experts.
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