Weather forecasts over the Fourth of July weekend predicted lower than expected temperatures for the Midwest and Northeast in the U.S. during the next six to 10 days. This would lessen the need for utilities to burn natural gas in the coming days and possibly weeks as customers decrease their air conditioner use and thus use less electricity.
Natural gas prices for the front-month August contract dropped 4.1%, or 18.1 cents, to $4.225 a million British thermal units on the New York Mercantile Exchange. This is the lowest closing price since Jan. 10 and the largest one-day drop since Feb. 26.
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The stock closed down 4.64%, or $1.37, to $28.14 on Monday. More than 12.4 million shares changed hands, compared to the average volume of 9,073,690.
TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."