This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

These 4 Energy Companies Have Burnt Out Today

Stocks in this article: HKCHKSDSZYM

NEW YORK (TheStreet) -- Chesapeake Energy (CHK), SandRidge Energy (SD), Solazyme (SZYM) and Halcon Resources (HK) have burnt out on the back of earnings releases this week.

Lagging the bunch, Solazyme plummeted 15.4% to $8.76, while Halcon Resources plunged 9.2% to $4.64, SandRidge dropped 7.9% to $5.99 and Chesapeake shed 5.8% to $26.50.

Chesapeake Energy

Chesapeake, which reported earnings before the bell Wednesday, plummeted after CEO Doug Lawler projected fourth-quarter oil production to fall around 9,000 barrels a day, due to asset sales and weather interference.

Despite the disappointing forecast, the Houston-based company reported better-than-expected third-quarter revenue of $4.87 billion, $1.38 billion higher than analysts surveyed by Yahoo! Finance had expected, and 64% higher than a year earlier. Earnings of 43 cents a share was in line with Wall Street forecasts.

TheStreet Ratings team rates Chesapeake Energy as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate Chesapeake Energy (CHK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."

SandRidge Energy

Oil and gas company SandRidge Energy was been pulled lower by fellow industry stocks, despite beating earnings estimates a day earlier.

The Oklahoma City-based company earned 7 cents a share on $493.6 million in sales, beating expectations of 2 cents a share on $465.69 million. Management said it increased its full-year production forecasts to 33.6 million barrel of oil equivalent (boe) for 2013, up by 300,000 boe.

"As our Mississippian rig count ramps back up over the next few quarters, we are confident that we will be able to grow production there by approximately 35% in 2014, which will contribute to 12% year-over-year organic growth for the company," said CEO James Bennett in a statement.

TheStreet Ratings team rates SandRidge Energy INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate SandRidge Energy INC (SD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally high debt management risk."

Solazyme

Also reporting after the bell Tuesday, renewable oil producer Solazyme reported revenue $3.2 million lower than predicted. The San Francisco-based company recorded a loss of 34 cents a share on revenue of $10.6 million, 24% higher than a year earlier.

Disappointing investors, the company said it has delayed commercial production at its Moema plant in Brazil to the first quarter 2014, later than the 2013 planned opening.

"While our timeline for oil production at Moema has been moved into 1Q, in part to accommodate additional enhancements we are making at the facility, we are excited to be nearing commercial production of our oils," said CEO Jonathan Wolfson in a statement.

TheStreet Ratings team rates Solazyme INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate Solazyme INC (SZYM) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow."

Halcon Resources

Halcon reported an earnings miss on Monday evening, sending shares lower since.

The company, based in Houston, missed earnings estimates by 2 cents, but cleared revenue forecasts by $46.64 million. For the third quarter, the oiler drew 4 cents a share on $305 million in revenue, up an impressive 316% on a year earlier. Average daily production grew to 37,707 boe, up 237% from the same period a year earlier.

TheStreet Ratings team rates Halcon Resources CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate Halcon Resources CORP (HK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs