Chesapeake Energy Corp (CHK)

NicieNicie (53.05) Submitted: 8/28/07 12:43 AM : Start Price: $32.26 CHK Score: -9.35

NOTE: Don't confuse CHK (Chesapeake Energy Corp.) with "CKH" (another Chesapake that deals in paper manu. and dist.).





Our CHK is headquartered in energetichas Oklahoma City, fourteen hundred miles from Virginia's Chesapeake Bay. The company has a distinct bent toward natural gas (to use the company literature, always "clean-burning natural gas"), and it has done well.


CHK has a wide palette of natural gas patches (or better said, "caverns"??), which gives it a mutual-fund feel: you won't strike it rich but because their holdings are so vast, you're not going to crap out. I hope.


CHK's Beta is a placid 1.02, and when you look at some of the outfits listed as competitors (sometimes medium-large oils that explore, sometimes gas exploration and transmission), you can see that there is comfort in that statistic.


Chesapeake Energy Corp.'s Corporate Governance Quotient (CGQ®) as of 1-Aug-07 is better than 37.9% of S&P 500 companies and 88.8% of Energy companies. This is not a survey of corporate ethics as such, but a quantifiction of how "tenured-in" major corporate officers are, and how they use their perks, esp. options. Learn more at Finance! Yahoo.


I especially want to commend CHK for their annual report, which is a model of intelligent design and communication. No "we are people serving people" fluff, not many "dynamic" on-site photos, but a calm discussion of where and how they operate, including a glossary (especially useful if you're getting tired of seeing terms like "Bcfe" used without explanation). We get acquainted with the major areas of N. American gas exploration, such as Anandarko, Ark-La-Tex and Manitoba.


On the whole this firm has a good feel to me and while it may never be as exciting as a Schlumberger or an Apache, it stands to do well in a society steadily increasing its uses and demands for natural gas. (After all, it really is "clean-burning"!)

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