NEW YORK (TheStreet) -- Shares of Chesapeake Energy Corp. (CHK) are down 2.33% to $22.23 after it was reported that the natural gas and oil exploration and production company has received subpoenas from states and the Justice Department seeking information on its royalty payment practices to mineral owners, according to a regulatory filing, Reuters reports.
Chesapeake, which is also being probed by the DOJ and states over possible antitrust violations related to land purchases, said it is responding to the subpoenas, according to a filing with the SEC.
The company had no comment.
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TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and poor profit margins."