NEW YORK (TheStreet) -- Shares of Chesapeake Energy Corp. (CHK) closed lower by 12.07% to $20.26 on Friday afternoon, as oil prices dropped following the Organization of the Petroleum Exporting Countries' announcement it has decided not to cut output.
Oil prices are down by 6.5%, which has sent energy stocks plummeting today.
Brent Crude was trading close to $73 per barrel on Friday, following a new four-year low, Reuters reports.
Investors warn that OPEC's decision will leave oil markets over supplied, Reuters added.
"Crude seems to have no floor right now, and we could easily see the price drop into the low $60s," Tony Roth, the chief investment officer at Wilmington Trust told Reuters.
Separately, 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, growth in earnings per share, increase in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."