Why Chesapeake Energy (CHK) Stock is Tumbling Today

Chesapeake Energy (CHK) stock is down after the company reported a net loss for the 2015 third quarter and cut its 2015 capital budget for the second time this year.
By Amanda Schiavo ,

NEW YORK (TheStreet) -- Shares of Chesapeake Energy (CHK) - Get Report are falling by 6.24% to $7.14 in early afternoon trading on Wednesday, after the energy company reported a net loss for the 2015 third quarter and cut its 2015 capital budget for the second time this year.

The company posted an adjusted net loss of 5 cents per share, compared to the loss of 13 cents per share analysts surveyed by Thomson Reuters had forecast.

With no adjustments, net loss was $4.69 billion for the third quarter, compared to a profit of $169 million for the same period in 2014.

Total revenue came in at $2.9 billion for the quarter ended September 30. Analysts were expecting revenue of $3.01 billion for the quarter.

Chesapeake Energy cut its 2015 capital expenditure target by $100 million to a range between $3.4 billion and $3.9 billion. The reduction comes as the energy company tries to deal with the continuing decline in oil prices.

Separately, TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

We rate CHESAPEAKE ENERGY CORP (CHK) a SELL. This is driven by some concerns, 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

You can view the full analysis from the report here: CHK

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