The stock is worth now, as much as it was trading for in 2003. The price tanked from the 26th of July on account of the oil prices falling off a cliff. Back in the day, the firm's revenues were 759M, today the firm's revenues are 1526% higher at 12.6B, yet the share price is the same.
Comments
HermanBrummer
⋅
Hi Tim thanks for the input.
From what I can see. CHK has a total debt of 10.6B, their debt to equity ratio is 5.00, this has shot up from 0.64 before the oil crash. I suppose this means that 50% of the company's assets are provided via debt. That seems like a higher number, but just how, high I am not sure. Their free cash flow is at -3B, and it has been in the negative for the last decade.
I could not find the BEP online, but did see this on threstreet.com,
"Unless there is a marked improvement in the natural gas and oil price environment, Chesapeake is a cheerless proposition. How else would you fathom the alarming figures -- a company with a $2.33 billion market cap and $11.60 billion debt?"
timwest
⋅
Hi Hermann, The prospects for a firm can be discounted in advance for years sometimes, which complicates this type of analysis. Let's look at the total debt outstanding for CHK and see if they are at risk of going bankrupt. Let's also examine free-cash-flow to see if CHK is profitable if you owned the whole business. If CHK isn't profitable, let's look at what their break-even price level is for their products.
From what I can see. CHK has a total debt of 10.6B, their debt to equity ratio is 5.00, this has shot up from 0.64 before the oil crash. I suppose this means that 50% of the company's assets are provided via debt. That seems like a higher number, but just how, high I am not sure. Their free cash flow is at -3B, and it has been in the negative for the last decade.
I could not find the BEP online, but did see this on threstreet.com,
"Unless there is a marked improvement in the natural gas and oil price environment, Chesapeake is a cheerless proposition. How else would you fathom the alarming figures -- a company with a $2.33 billion market cap and $11.60 billion debt?"