Chesapeake Energy Corp. (NYSE:CHK) does not seem to be able to catch a break. Shares of the oil and natural gas drillers were down again ~11 percent on Monday when investors again used the opportunity to lock in profits and say goodbye to it after a very good run. The company has succeeded in orchestrating a change in investor sentiment last month when it said that it agreed with its lenders to amend its revolving credit facility, including substantial covenant relief that was widely interpreted as a big win for the energy company.
Further, despite a big loss on the back of another round of impairments related to Chesapeake Energy's oil and natural gas properties, the company's Q1-16 results were 'in line' with expectations. If anything, Chesapeake Energy's announcement that it agreed to sell 42,000 net acres in Oklahoma to Newfield Exploration Company (NYSE:NFX) for $470 million was a positive development that demonstrated that the struggling energy company can pull off asset sales in a very unfavorable market.
Consider also that oil prices rebounded from below $30/barrel earlier this year to more than $40/barrel, and the sudden shift in investor sentiment, and the surge in Chesapeake Energy's shares are easily explained.Read more by clicking right here.
Connect with us on Facebook and Twitter!