Tuesday Night Public Post

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Chesapeake News: As many of my long term readers will know I've been saying the natural gas production curtailment press releases have been on the drawing board for some time and were pennies from being sent to the news wires. Today after the close Chesapeake did not disappoint:

  • Production Curtailment: I've said it was coming in the near future for the last several weeks and again over the weekend.
"I'm beating a dead horse but since it's dead I'll hit it again. $5 gas means a much lower number at the wellhead in many places including the Rockies. Press releases will be crafted and released regarding shut ins" Comment: And there you have it! This is where the storage surplus has come from. If CHK is feeling the pinch that means probably have of the other players there are in a worse position with regards to land costs and a majority don't have the same leverage with the service companies.
  • Master Limited Partnership Formation As Expected. They plan to raise in excess of $1 billion.
  • Asset Sales: 1 Now, 4 More To Come. These in combination with the MLP should go a long way towars alleviating the fear of near term equity offerings. This morning I called BMO's downgrade of (CHK) bogus but little did I (or apparently the analyst) get just how lame a call it was. Nice bit of humble pie for him there.

  • So In Aggregate, That's $3.5 Billion Raised. Equity deal schmequity deal. This is a royal “shut the hell up” to the BMO analyst downgrade this morning. Like I said, bogus downgrade.

Scoop at 3:42 Est Tuesday:
Z Is it time to take some profits in APC,COP,RIG, TSO,VLO? Averaging a double.
Comment: Now those are problems to have!

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