Analyst Appeals to Carl Icahn to Make Takeover Bid for Chesapeake in Open Letter

By -
From Seeking Alpha:
Dear Mr. Icahn: 
A few years back, I had the opportunity to meet you at an investor conference in New York. You specifically told me never to ask you for money, but if I had a good idea to call. It was quite a few years ago, and I sincerely doubt you would remember me besides. So, I thought the easiest, most resourceful way to get word to you was to post an open letter on a widely read investor site like Seeking Alpha. That said, I have an idea for you in a name you know extremely well - Chesapeake Energy. 
Like you, I've been invested in Chesapeake for some years. It is been a frustrating investment for sure, down more than 50% in the past six months. While I think CEO Doug Lawler and his team have done an excellent job under the circumstances; the stock has been a disaster. The Company is not buying their stock back at these depressed levels, and they are in no position to raise the dividend. Truthfully, I believe that management is more concerned with appeasing Wall Street analysts than trusting their good business judgment. Moreover, the stock does not trade on CHK's company fundamentals; it is more or less a liquid proxy for natural gas, both long and short, which has not helped Chesapeake's situation. That said, the biggest problem with Chesapeake's stock is there is little urgency to invest, and no foreseeable catalyst. The stock needs a real push - something that will create urgency and get both financial and strategic buyers interested again. Frankly, I think the most efficient way to create value in CHK's situation is to break the company up into smaller, more manageable pieces. As investors, we got a little taste of this potential when CHK sold their Southern Marcellus assets for an enormous valuation in December. 
That brings me to the point of my letter - have you considered making a bid for Chesapeake?
Read more by clicking here.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be...
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividen...
Read more

Do You Know The History of Fracking?

By -
Image
  In 2018, 59% of total oil production in the U.S came from hydraulic fracking, which means it accounted for more than two-thirds of domestically manufactured gas. By 2024, fracking will reach an astounding $68 billion market value! Of course, fracking is not a new drilling method as you can trace it back hundreds of years. That's why we want to consider the history of hydraulic fracturing (fracking). We will be stating historical facts about it and focusing on the major historical occurrences that have influenced modern-day fracking. Pre-Fracking Days The idea of fracking started back in 1862 when Edward A.L. Roberts (Civil War veteran) witnessed Confederate soldiers exploding artillery rounds into a canal that obstructed a battlefield. At the time, Edward A.L. Roberts called it superincumbent fluid tamping. On April 26th, 1865, Edward A.L. Roberts began experimenting with exploding torpedoes, which consisted of lowering a torpedo containing an amount of powder from fifteen to tw...
Read more