Chesapeake Energy (CHK) Stock Falls with Declining Oil Prices
NEW YORK (TheStreet) -- Shares of Chesapeake Energy (CHK) - Get Report are retreating 4.55% to $5.14 this afternoon as oil prices head toward a three-month low.
Crude oil (WTI) is down 2.44% to $43.11 per barrel and Brent crude is down 2.1% to $44.73.
Despite forecasts of record U.S. summer driving, there remains a massive overhang in refined products like gasoline, CNBC reports. U.S. drillers have been increasing the number of active rigs, leading to further concern that stockpiles would grow.
Data from Genscape revealed that inventory at the Cushing, OK delivery point for U.S. crude futures rose by 1.1 million barrels in the week to July 22.
Barclays also said that global demand in the third quarter will expand at less than a third of the previous year's rate. Demand in both developed economies and growth in China and India are slowing as well.
Chesapeake Energy is an Oklahoma City-based natural gas, oil and natural gas liquids producer.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of E+.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: CHK