Chesapeake Energy is about to release earnings. Ponder this Bear Case Scenario.
Two thirds of revenues come from natural gas and earnings are therefore leveraged to gas prices for the foreseeable future.
CHK may have to issue equity if they cannot find more buyers for assets. Everyone sees them coming. Distress sales are a possibility.
The rush for unconventional acreage is over. Chesapeake will have to earn money the olde fashion way. Selling a commodity for more than it really costs.
George Gutowski writes from a caveat emptor perspective.