Chesapeake Energy Corporation (CHK) Shares Not Rated By Goldman Sachs

Chesapeake Energy Corporation (NYSE:CHK) shares are listed as Not Rated by Goldman Sachs Group, Inc. (NYSE:GS). The latest report from the firm shows updates to analysts’ estimates to place their forecasts in line with the company’s third quarter filing.

Chesapeake Energy Corporation (CHK) Shares Not Rated By Goldman Sachs

Goldman Sachs Group, Inc. (NYSE:GS) analysts believe shares of Chesapeake Energy Corporation (NYSE:CHK) face two major challenges. First, they see “strong oil growth visibility / execution,” and second they also see a problem for the company in reducing its free cash flow deficit, so that asset sales are not needed in order to keep the balance sheet healthy.

ValueWalk has been following Chesapeake Energy stock closely for some time. As we reported last month, Carl Icahn’s 13D SEC filing showed that he increased his stake in Chesapeake Energy Corporation (NYSE:CHK) significantly. As of that filing, he owned more than 59.6 million shares, which equated to about 9 percent of the company.

ValueWalk’s Jacob Wolinsky speculated that Icahn was preparing to face off with management in a proxy war, because Chesapeake Energy CEO Aubrey McClendon has been criticized for misusing shareholder money and even accused of running a hedge fund on the side. After Icahn’s recent purchase of the stock, he became the company’s second largest shareholder.

Also last month we covered Chesapeake Energy’s debt woes. The company attempted to refinance its debt, but that didn’t help its cash flow problems.

In late morning and afternoon trades today, Chesapeake Energy Corporation (NYSE:CHK) shares were trading about 1 percent higher. The stock has been trending downward in the past five days.



About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.