NEW YORK (TheStreet) -- Shares of Chesapeake Energy Corp. (CHK) are lower by 0.55% to $12.99 in pre-market trading on Thursday morning, after the energy company was downgraded to "perform" from "outperform" at Oppenheimer this morning.
The firm said it lowered its rating on Chesapeake Energy as it believes lower oil and gas prices will continue to hurt the company's production and earnings.
Oppenheimer set a $22 price target on Chesapeake Energy stock.
"Based on the future strip benchmark oil and gas prices, we expect CHK to report losses of $544M this year and $833M next year, or $0.48 per share and $0.84 per share, respectively" Oppenheimer said in an analyst note.
Chesapeake Energy is a producer of natural gas and liquids based in Oklahoma City, OK.
Separately, TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: