Market Discussion

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 ( 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.

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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.

CHK at 26 cents. On life support.

Holy crap

Reverse spilt coming. Woof.

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I don’t normally follow the “expert” opinions, but this made me chuckle.

Reverse split, hopefully 100:1 to push the price to $25 and giving me the opportunity to buy some 2021 $15 puts.

I take no pleasure in this: CHK equity is worth $0. Their acccount at Staples has a higher chance of getting paid back than the equity holders in 2021. The Staples account is higher in the stack!

I think the play might be to watch CLR as the market falls lower. My hypothesis is that Hamm resigned as CEO so he could eventually take it private.


That makes a lot of sense, could definitely see Hamm doing that. They have a quarter of the rigs running in Oklahoma right now…plan on drilling 100 wells in the SCOOP through 2021. I think it will be really interesting to see what happens.

Oil just crashed.

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Well, I just lost my appetite for this evening.

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Goldman set a Q2/3 price target for WTI at 29/28 with the Brent/WTI spread falling to $1. Looking at another 5%+ drop in equities tomorrow as futures are getting crushed. 30y treasury going under 1%, which I don’t think happened in the last financial collapse over 10 years ago. This is bad.

Oklahoma better buckle up.

Again, I take no pleasure in it, but CHK is worth $0. Debt will be valued at about 20c on the dollar once tonight’s move is factored in.

Some big names in the energy patch are going down. Oil field services… oof.

The stock market futures look great! :joy:

Yeah this is a blood bath.

Oil down 26% overnight. Crazy.

Knew energy was going to get smashed so I went to the office at 2pm to prep for the open at 5pm. Maaan, watching those bids tick lower in the last few minutes, my heart sank. I was speaking with a contact on the Goldman desk pre-open and said I’m a firm $32 bid for April, and they said “not tonight.” Boom! Back patting done on that call.

Refinanced my 30y the other day at 3 1/8. Seriously think that by the time this whole thing shakes out, might be able to refi again at 2% or lower for 30. The 10y treasury dropped below 0.5% for the FIRST TIME IN HISTORY. Wild.

Feel the need to constantly say that I take no pleasure in this collapse. Professionally, I have a front row seat. Everyone who is a shale player, hold onto your butts.