NEW YORK (TheStreet) -- Chespeake Energy Corp. (CHK) - Get Report shares are falling 1.26% to $2.36 on Tuesday along with retreating oil prices after Saudi Oil Minister Ali Ibrahim Naimi said output cuts will not happen.
Crude oil (WTI) is sliding 5.06% to $31.70 per barrel and Brent crude is tumbling 4.15% to $33.25 per barrel.
Oil producers will meet in March, but Naimi noted "Freeze is the beginning of a process, and that means if we can get all the major producers to agree not to add additional balance, then this high inventory we have now will probably decline in due time. It's going to take time," CNBC reports.
Naimi added, "It is not like cutting production. That is not going to happen because not many countries are going to deliver even if they say they will cut production - they will not deliver. So there is no sense in wasting our time seeking production cuts."
This action comes after Saudi Arabia, Russia, Qatar and Venezuela last week proposed a freeze that would put a lid on production at January levels.
Chesapeake Energy is expected to report fourth quarter 2015 earnings on Wednesday before the opening bell. Wall Street is looking for a loss of 17 cents a share on revenue of $2.63 billion.
Separately, TheStreet Ratings currently has a "Sell" rating on the stock with a letter grade of D.
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.
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.
You can view the full analysis from the report here: CHK