NEW YORK (TheStreet) -- Shares of Chesapeake Energy Corp. (CHK) are down by 1.63% to $19.96 in mid-morning trading on Wednesday, as some energy and oil related stocks decline due to the drop in oil prices.
Crude for February delivery is falling by 2.78% to $55.53 per barrel on the NYMEX this morning.
Yesterday oil prices rallied thanks to positive U.S. economic data and comments made from OPEC members saying they are expecting global oil prices to rebound to a range between $70 and $80 per barrel by the end of next year.
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Since the summer oil prices have fallen almost 50% due to a global oversupply. Recently OPEC announced it has no plans to cut its production rate despite the supply gut and a softening of demand.
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 a few notable strengths, 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."