The oil digging company has faced a massive downfall in which its shares came down by 1.8% bringing the share price to $11.67.
In a recent press release, it was seen that Chesapeake Energy Corporation fell by a massive 1.8 percent in the last trading session that oil firm went through as of on Friday, June 19. The share price that was recorded by the end of the trading day came around at $11.67 which was taken as a surprisingly low price for the shares to adopt.
This decline was noted down due to the fall in the value of the crude oil that brought about a stir in the energy companies all over the globe. As for the crude oil delivery, it was seen to see a massive dip of 1.9 percent for the month of July, while on the other hand, per barrel price of the oil was seen to be at $59.30. As for the Brent crude oil prices, they also went down by a large difference. The delivery for August of the crude oil (brent) was seen to fall by 2.4 percent, which resulted in the value of one barrel coming around at $62.70.
This fall in the oil industry had been predicted as per a report published by Reuters recently, and the predictions were mentioned in oil forecasts. Even though a fall has been seen in the oil output, the shale oil producing companies seem to be quite bullish about their future as they think that their position in the market is expected to become better in the coming months.
On the other hand, many analysts made coverage on Chesapeake stock and decided to give various ratings. TheStreet equity analysts also carried out a detailed research on the stock activities in which they came to the conclusion of granting the shares of the oil digging firm with a ‘sell’ rating. The reason such a negative rating was presented to the shares of the oil company due to many reasons, among which one of them was the fact that no proper strengths were shown by the firm. The analysts also believe that the current situation shows that the firm’s negativity is far more on the heavier side than any positivity which means that the shareholders and investors have not much to look forward to.
Due to the downgraded position of the shares, the investors in the oil company will not be able to obtain good results out of their shares, which is why they have been guided by the firm to sell their Chesapeake shares. The discouraging return on the shares is one more displeasing factor which has made the analysts turn bearish towards the company.
The oil digging company has experienced an eminent loss in the short interest shares which has been recorded at 6.3 percent.
In the most recent news about oil companies, it emerged as a fact that Halliburton Company experienced a fall in the short interest shares of the firm on the stock index by a massive change of 6.3 percent. As for the record noted down on May 29 2015, the short interest shares were recorded at 44,013,064 shares and the days to cover have come around at 4, considering the shares traded on a daily basis are at 10,749,017. As for the outstanding shares that are found on the stock index, it was seen that the interest of those shares also declined by a massive 5.2% which is not being taken in a positive manner by analysts.
Halliburton has also reported a number of insiders selling and buying transactions in filings presented to the Securities Exchange Commission in which it was seen that on May 5, the President of the oil digging company carried out a selling transaction within the stock of the oil firm in which he was seen to be selling around 6,000 shares at an average price of $50. On a whole, the revenue generated through the selling turned out to be around $300,000.
On the other hand, it was seen that the oil field services providing company was covered by various analysts at different brokerage firms. JP Morgan was seen giving guidance to the investors by giving Halliburton shares a rating of an ‘overweight’ along with an indication that suggested them to sell their shares as the price target has been set by the analysts of the equity firm at $56.
On Tuesday, June 9, 2015, Halliburton stock seemed to be going through an active trade session in which the shares ended up going down by around 0.14 points. The share price that was recorded by the end of the day came around to be $45.28. The lowest point that the shares were seen touching during the day was noted down at $45.26 whereas the highest point was at $46.07. The oil field company has a market value that is worth $38.528 million.
Halliburton has around 850,874,000 shares that have been offered to the general public for ownership. In the past year, the firm witnessed its shares reaching the highest position with a share price of $74.33 whereas the lowest that was experienced was at $37.21. The 52-week high value of the shares has been printed out at $74.33 and, on the other hand, the 52 week low of the energy company has turned out to be at $37.21.
The oil company has been trading on a real low following the EIA report that was released regarding the expected decline in oil prices that might take place in the summer of 2015.
Chesapeake Energy Corporation was seen trading on quite a low share price on Friday, June 5, which was due to the negative report that emerged regarding the natural gas reserves that were seen to show unnatural highs and lows. According to a report by Energy Information Administration of the United States, it was seen that on June 4 the natural gas reserves increased by a massive amount that surprised the whole industry. The expectation from the gas reserves was to reach around 112 billion cubic feet, however, the actual reserves touched a massive 132 billion cubic feet as per the research of the EIA. This significant change in the amount of the natural gas was recorded as the largest increase in the gas reserves in the past ten years.Only last week, it was seen that the natural gas reserves had increased to 112 billion cubic feet. Therefore, the total inventory of the natural gas has come around at 2.233 billion cubic feet. This is one of the most significant changes of the year, keeping in mind that last year the gas reserves were 50.6 percent less than what they are now, been reported to be around 1,482 billion cubic feet only.On the other hand, the Natural Gas Supply Association has released a new research on the demand of natural gas that might surface in the current year. The annual outlook that is reported by the association every year looks quite positive this time around, believing the demand to be a record-setting one. One thing to be considered is that the increase in demand is not going to help the oil industry as analysts believe that the production expenses are also going to be seen on the surface.In a report by the NGSA, it was explained that even though the demand is likely to increase, the price of natural gas is also expected to get affected on a big scale. Saying this, the prices are therefore expected to be going down on the scale more than they did in 2014. One more thing is that the fact price of production is also going to get increased cannot be ignored and it is expected that that too might break records.On the other hand, since the supply is much more than the demand considering the high volume of natural gas in the current situation, it is expected that the oil prices go much lower than the present price natural gas is being traded on. Chesapeake shares have been taking a downward toll following this report which has made the share price reach the 52 week low of the stock at $12.8.
