Shares of OKC-based Chesapeake Slide Amidst Gas Glut
NEW YORK (AP) — Chesapeake Energy Corporation's stock fell on Wednesday as an analyst downgraded the country's second-biggest natural gas producer amid declining oil and natural gas prices.
Bernstein Research's Bob Brackett lowered Oklahoma City-based CHK's rating to "Market-Perform" from "Outperform." In a client note, Brackett said that Chesapeake is taking positive steps forward — such as agreeing with activist investor Carl Icahn and shareholder Southeastern Asset Management to replace four of nine board members. But he added that many of its recent actions, including the resignation of two board members, are already priced in.
Shares of Chesapeake Energy fell 30 cents to $17.17 in afternoon trading. The stock is down 23 percent so far this year and is worth almost 40 percent less than it was in June 2011.