Chesapeake Energy being bought out?

There are rumors of BP making a bid on Chesapeake and a Louisiana News Station reported Exxon's buying out of Chk. Any thoughts?

BP jumps; traders cite talk of bid for Chesapeake
Reuters - 2 hours ago
LONDON, Jan 26 (Reuters) - Shares in British energy group BP (BP.L) rose more than 3 percent on Monday as traders cited market talk that the company was ...
BP moves higher on market talk of possible Chesapeake bid
guardian.co.uk, UK - 3 hours ago
A buoyant stock market tends to bring out the rumours, and this afternoon is no exception. BP is 17.5p higher at 505p after traders heard tell it might be ...
Options Update: Chesapeake Energy Calls Popular on BP Buyout ...
Schaeffers Research, OH - 25 minutes ago
by Joseph Hargett (jhargett@sir-inc.com) 1/26/2009 1:15 PM Speculation is swirling around Chesapeake Energy (CHK: sentiment, chart, options) and British oil ...

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Permalink Reply by Betty on May 15, 2012 at 12:26pm

thanks.  I'll look for it again.  wasn't on yahoo business

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 15, 2012 at 12:18pm
Hmmm...12 billion of secured debt and 12 billion of unsecured debt issued by Goldman Sachs...It doesn't take a Wall street genius to figure this one out.
Jim ShoosPermalink Reply by Jim Shoos on May 16, 2012 at 4:15am

Only someone uneducated in the commodity portfolio of CHK would think that their stock is a buy due to a run up in oil prices.

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 16, 2012 at 4:19am
Ok Jim...believe what you want. Your right..CHK hasn't pulled out of most of their dry gas holding into liquid rich...which is based on the price of oil.
Jim ShoosPermalink Reply by Jim Shoos on May 16, 2012 at 4:40am

Yes, they have begun curtailing their drilling priorities in dry gas areas, but they have only high graded into staying in their A++ dry gas areas.  They have leased in liquids rich areas, but they have drilled very little of it and virtually none of it is on production currently.  So a bump in oil prices (keeping in mind that gas associated liquids sells for a little less than half of what crude oil is priced at) does absolutely nothing for their cash flow and only minimally adds to their asset value since they haven't yet achieved PDP (Proved Developed Producing) status.  No lender or potential buyer is going to assign much value to "Probable or Possible" reserve categories... certainly not enough to cover the Nut that CHK has created with their debt.

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 16, 2012 at 4:52am
You just don't get it do you...it's not about the numbers man...its way beyond that my friend.
Jim ShoosPermalink Reply by Jim Shoos on May 16, 2012 at 4:57am

Oh, I get it.  It's ALWAYS about the numbers... unless you're Bernie Madoff and you simply make up numbers. 

1w1vl8clda7t4Permalink Reply by 1w1vl8clda7t4 on May 16, 2012 at 5:01am
You are simply clueless...it would take a Wharton grad to decipher CHK. financiasl...and your telling me you understand them...right.
Jim ShoosPermalink Reply by Jim Shoos on May 16, 2012 at 5:10am

LOL... I could care less about their financials.  Financials are for fools...they are retrospective snap shots of a moment in time and provide absolutely no guidance to future results.  My perspective on CHK is based upon my personal knowledge of their inner workings.  There are warts on their butt that nobody knows about...yet. 

Permalink Reply by Chartist on May 15, 2012 at 11:58am

goldman sachs is providing a debt backstop to the tune of $12 billion to allow for a more orderly asset auction....we'll see what's left

Permalink Reply by Betty on May 15, 2012 at 12:31pm

Fire Sale!  CHK stock on sale -- down 87 cents after hours trading -- $14.65 -- for those willing to take a chance.  and this may not be the end of the bad news.  JR -- where are you?  

Permalink Reply by JR on May 15, 2012 at 3:33pm

I'm reading 1) there's blood in the water, and 2) they've gotten enough in bridge loans to tread that water while the sharks circle. Story developing...the fact they're rated as a "junk bond" and all the other ancillary info, my guess is they are ripe for a sale--but not yet.  Maybe 2013, given the loan. As I previously said, now that there's a jugular exposed, the media will continue to crawl up CHK's you-know-what with a microscope until they either bring it down (99.9% of the time), sold, or are fully vindicated.  But let's be real.  That is one helluva uphill battle.

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