Comments on: Chesapeake Energy Analyst Day Update

By: The Enlightened American » Chesapeake Energy (CHK) Shoring Up Balance Sheet

The Enlightened American » Chesapeake Energy (CHK) Shoring Up Balance Sheet — Sat, 15 Nov 2008 00:17:41 +0000

[...] commented on Chesapeake Energy (CHK) a few weeks ago so other than a brief Q3 update here, I refer you to that [...]

By: fred poppe

fred poppe — Tue, 28 Oct 2008 05:21:23 +0000

I appreciate your analysis of CHK, since I did not take the time to sit through their entire webcast.
Just discovered the availability of the prefereds and purchased the 10% yld.
First time I logged on to your website. I’ll be a regular.
It is good to know somebody level headed in this jungle. Also switched from XTO to 9%yielding HGT – same mgmt/ownership. High yields give some protection, just ’some’.
This hysteria will pass – how the liquidity crisis will play out is an uncertain to me Thx for sharing!.

By: Davy Bui

Davy Bui — Mon, 27 Oct 2008 18:51:39 +0000

Reader question:

> Subject: Chesapeake Energy
>
> Message:
> Why the preferred instead of the common? Thanks.
>

For the higher dividends. The 2 preferreds trading on the NYSE have yields of about 6 & 9% respectively. With the preferreds, you do have somewhat of a conversion premium but in this bear market, getting the extra yield is attractive to me.