In what will surely be one of the most eagerly awaited financial dates in the next month, Chesapeake Energy Corporation (NYSE:CHK) will announce its earnings for the third quarter of 2012 on the first of November. That meeting will also include an update on the company’s strategic plans.
Chesapeake Energy Corporation (NYSE:CHK) has been one of the most talked about companies in the world in the last twelve months. The firm swung from record low gas prices, to allegations of corporate malfeasance, and eventually a return to the fold. A recent report from Deutsche Bank has even rated the company as a buy.
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The release of the company’s most recent financial data will be of interest to many on Wall Street. Some traders lost a great deal of money, as the company’s stock crashed this year, while others are just now investing in the firm, betting on a successful turn around.
The release of the financial results will take place after the market closes on the first of next month. A conference call will be held, with executives from the company speaking to investors and analysts. Many will await the words of tarnished CEO Aubrey McClendon, assuming he takes to the phones on the date.
Chesapeake Energy Corporation (NYSE:CHK) became a favorite among investors, as it sought to turn the large supply of natural gas in North America into a viable economic boon. The company has thus far failed in that gambit, but the promise of future riches is enough to entice the media and investors alike.
The natural gas production boom in the mainland United States caused a glut in supply. Coupled with a warm winter, this caused the price of the commodity to drop quickly in price, making it less than viable. The export of liquified natural gas is the hopeful savior of the market. Chesapeake Energy Corporation (NYSE:CHK) means to make that a reality.
The infrastructure required is not only expensive, but is time consuming to put together. As the company faced losses throughout the year, it needed to pay off its debt with cash garnered from the sale of assets. The program of sales was planned to be worth around $20 billion in total.
Chesapeake Energy Corporation (NYSE:CHK) is seeking to reassure the markets that it does know its way forward, and it can turn the natural gas boom on the continent into a real business.
Since a crash to a price of around $13.50 in May, shares in Chesapeake Energy Corporation (NYSE:CHK) have recovered to today’s $19.59. Shares have remained around that price since a rise in early August.
The firm has managed to successfully complete the sale of enough assets to cover its current debts. Future debts have yet to be catered to, it is assumed they will be paid off in the same way. Part of next month’s announcement is sure to concentrate on those debts.
Chesapeake Energy Corporation (NYSE:CHK) may have returned to some normality, investors no longer see it in the light they once did. The company remains a risky bet, and one many investors will forgo without encouraging results this time around.