I was looking around at today’s market news and saw that Chesapeake (CHK) dropped to $0.56. I did a little more research and saw the book value is currently $1.81 (https://finviz.com/quote.ashx?t=CHK). Does this company make it?
Where do you see oil prices for the next year? ZeroHedge (I know, I know) recently ran an article stating:
Chesapeake, for instance, recently warned it may not be able to continue as a “going concern” if low oil prices persist.
Down due to over supply seems the most likely path. I’m curious how this impacts the Tulsa economy if so.
Oh Oklahoma, pinning all of the state’s economic hopes on fossil fuels.
It’s about 14% of the personal income in the state. 86% comes from somewhere else.
$CHK up to $0.94 from $0.56 over a month ago. Risky buy but wow does that pay off if you’re into penny stocks.
Smart money (not mine, haha), would have been smart to buy at $.56 after that 3rd quarter report caused the big drop. But a lot of folks saw what happened to Sandridge or bought on their way down and got bit. Will be real interesting to see what happens in the first quarter of 2020. If oil stays above $60, there will be a lot of activity in Oklahoma. If it drops back to $55 or less that will dry up pretty quick. As of right now, there are several companies doing a fair bit of drilling after the first of the year.