Chesapeake Energy (CHK) Stock Retreating as Oil Prices Dip

NEW YORK (TheStreet) -- Shares of Chesapeake Energy (CHK) - Get Report are lower by 2.82% to $3.62 in mid-morning trading on Monday, as some energy and related stocks take a hit from the decline in oil prices.

Crude oil (WTI) is falling by 1.82% to $47.53 per barrel and Brent crude is sliding by 2.03% to $47.73 per barrel this morning.

The price of the commodity is trading in the red for the fourth consecutive session as investors shift their focus back to the global oversupply, Reuters reports. Investors are concerned about the persistent oil glut as Iran insists on increasing its exports.

Also adding to the decline in prices today is the slowdown in rig reductions by U.S. drillers.

Rokneddin Javadi, Iran's deputy oil minister, told the Mehr news agency on Sunday that the country has no plans to stop its rise in production and exports, Reuters added.

Chesapeake Energy is an Oklahoma City-based producer of natural gas, oil and natural gas liquids.

Separately, TheStreet Ratings has set a "sell" rating and a score of E+ on Chesapeake Energy stock. This is based on a variety of negative investment measures, which should drive this stock to significantly underperform the majority of stocks that TheStreet Ratings covers.

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.

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.

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