Chesapeake Energy Corp  CHK

Summary (from latest annual report – 2015)

• Total equity: 2.13 billion USD
• Market Cap is 4 billion USD ( last price of the stock is 6.01 USD)
• Chesapeake Energy Corp is a natural gas and oil exploration and production company. It explores, develops and acquires properties for the production of natural gas and crude oil from underground reservoirs and also provides marketing & midstream services
• Equity of total company decreased from 16.9 billion USD in 2014 to 2.3 billion in 2015
• Company has 825 million USD in cash on account (from latest annual report2015 year)
• Total equity – cash on account = 2.13 billion usd – 825 million usd = 1.3 billion usd
• In 2015 company has 10.35 billion USD long-term debt, short – term debt was 381 million USD(In 2014 company had 2.04 billion USD short-term debt , long-term debt was 11.15 billion USD)
• CHK balance sheet has become weaker in 2015 (In latest annual report - total equity decreased to 2.13 billion  USD from 16.9 billion USD in 2014, total debt was 10.73 billion USD in 2015)
• Company's revenue decreased in 2015 to 12.76 billion USD from 20.95 billion in 2014
• Net loss in 2015 was 14.68 billion USD, Net income in 2014 was 1.74 billion USD
• In 2015 company paid 374 million usd dividend to its shareholders

Chesapeake Energy Corp Subsidiaries

Chesapeake Energy Corp is a natural gas and oil exploration and production company. It explores, develops and acquires properties for the production of natural gas and crude oil from underground reservoirs and also provides marketing & midstream services. The Company owns interests in approximately 45,100 oil and natural gas wells that produced an average of approximately 729 thousand barrels of oil equivalent (mboe). In 2015, the company produced 679 thousand barrels of oil equivalent (4,150,000 GJ) per day, which was 72% natural gas, 17% petroleum, and 11% natural gas liquids.

The company's properties are divided into two operating segments: the Southern Division and the Northern Division.

The northern division, which accounted for 42% of total production volumes in 2015 and 39% of total proved reserves at December 31, 2015, includes the acreage in the following areas:

• Utica Shale in Ohio and Pennsylvania (18% of total proved reserves) – worth 720 million USD
• Marcellus Shale in the northern Appalachian Basin in Pennsylvania (17% of total proved reserves) – worth 680 million USD
• Niobrara Shale in the Powder River Basin in Wyoming – worth 200 million USD

The southern division, which accounted for 58% of total production volumes in 2015 and 61% of total proved reserves at December 31, 2015, includes the acreage in the following areas:

• Eagle Ford Shale in South Texas (24% of total proved reserves) – worth 960 million USD
• Anadarko Basin in northwestern Oklahoma and the Texas Panhandle, Haynesville/Bossier Shales in northwestern Louisiana and East Texas and Barnett Shale in the Fort Worth Basin in north-central Texas – worth 1.44 billion USD

In 2005 Chesapeake Energy agreed to buy Columbia Natural Resources LLC (CNR) for 2.3 billion USD - today worth 380 million USD

Total = 4.38 billion usd

Opinion about the company

Fundamentally it is a not good company  (Total debt is very big -  10.73 billion usd, company has 825 million USD in cash on account, ROE is negative:  around - 230 %).