Chesapeake Energy (CHK) Stock Tumbling Alongside Oil Prices
NEW YORK (TheStreet) -- Shares of Chesapeake Energy (CHK) - Get Report are down 8.72% to $4.18 as oil prices drop on news that the U.S. holds bigger reserves of oil than Saudi Arabia or Russia.
A study released this morning showed that the U.S. now holds more oil reserves than Saudi Arabia or Russia for the first time in history.
Rystad Energy estimates that the U.S. holds 264 billion barrels, vs. Saudi Arabia's 212 billion and Russia's 256 billion.
Crude oil (WTI) is declining 4.55% to $46.76 per barrel this morning and Brent crude is falling 4.37% to $47.91 per barrel.
Also, oil prices have been pressured by the rising rig count. The U.S. operating rig count has increased four of the last five weeks, jumping by 10 rigs to 431 last Friday, according to Baker Hughes (BHI).
Oil is also being impacted by a stronger dollar today.
Separately, TheStreet Ratings rated this stock as a "sell" with a ratings score of E+.
This is based on the dominance of unfavorable investment measures, which should drive this stock to significantly underperform the majority of stocks that TheStreet Ratings rates. 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
Recently, 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.