Chesapeake: This Energy King Will Peak On Natural Gas Rise

Chesapeake Energy1 Chesapeake: This Energy King Will Peak On Natural Gas RiseStill feeling the effects of too much natural gas and not enough demand, energy companies are looking for creative maneuvers for keeping their businesses profitable. Chesapeake Energy (CHK) is utilizing the technique of partaking in some good old fashioned deal negotiations to build up cash. The company had been on a selling spree late last year, shedding some pipeline and other infrastructure to raise about $2 billion, but it is Chesapeake’s tenacity to continue making deals to raise cash that makes this company so attractive. I believe Chesapeake is going to soar in coming years based on its proactive approach to generating money, its future rewards from natural gas, and its constant hunt for new shale assets.

Trailing slightly behind Exxon Mobil (XOM), Chesapeake is the largest U.S. producer of natural gas. Of course, we all know that natural gas hasn’t budged much in regards to demand and its recent price dipped below the dreaded $2 mark. Even rival ConocoPhillips (COP) has had to make adjustments through partnerships, spin-offs, and acquisitions. But this is where Chesapeake begins to shine. The company is raising cash, building up a source of funding for future expansion. In a statement made in early April, Chesapeake’s CEO Aubrey K. McClendon, said, “We plan to monetize other non-strategic assets during 2012, including our assets in the East Texas Woodbine play where we own approximately 50,000 net acres of leasehold.To continue reading, click here.

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