Here’s Why Chesapeake Energy (CHK) Stock Is Falling Today
NEW YORK (TheStreet) -- Chesapeake Energy (CHK) - Get Report stock is declining 2.52% to $4.07 in afternoon trading on Friday after profit taking pressured oil prices. A stronger dollar also weighed on crude prices, making the commodity more costly for foreign investors.
WTI crude is down 1.24% to $46.12 per barrel on the New York Mercantile Exchange, while Brent crude is falling 0.73% to $47.73 per barrel on the Intercontinental Exchange this afternoon.
OPEC output reached 32.44 million barrels per day last month, up by 188,000 barrels per day compared with March production, Reuters reports.
OPEC's production is at the highest level since 2008, while data showed domestic production may have fallen.
U.S. energy companies took 10 oil rigs out of production this week, bringing the rig count to 310, compared with 660 rigs for the same week last year, according to data from Baker Hughes (BHI).
"The market sentiment remains biased to the upside supported by a growing view that the global oil complex is already in a rebalancing pattern," Energy Management Institute senior partner Dominick Chirichella told Reuters.
Oklahoma City, OK-based Chesapeake Energy is an oil, natural gas and natural gas liquids producer operating in the U.S.
Separately, Chesapeake has a "sell" rating and a letter grade of E+ at TheStreet Ratings because of the company's generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing stock performance.
You can view the full analysis from the report here: CHK
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 article's author.
