Chesapeake Energy Corporation (NYSE: CHK) is having a relatively strong start tot he trading session in the pre-market hours this morning, and for good reason. A report broke in the after hours on the Wall Street Journal surrounding the potential of an asset sale at CHK. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for ahead.
CHK Could Sell Assets
As mentioned above, Chesapeake Energy is having an incredibly strong start to the trading session this morning as news breaks that an asset sale is just around the corner. According to a WSJ post that was published late yesterday, CHK has held talks with Tellurian (NASDAQ: TELL) surrounding the idea of an asset sale.
According to the reports, TELL is interested in buying the Louisiana natural gas fields owned by CHK. According to Jefferies analysts, these gas fields have a value of around $2 billion. According to sources close to the story, Tellurian has offered Chesapeake the opportunity to take equity as part of the asset sale, but that is not something that CHK is interested in.
Nonetheless, at the moment, there is no deal. While one may come down the line, this idea is nothing more than speculation at the moment. So, if you’re going to make any moves based on this news, please be sure to do so with caution.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dabble in the market is that the news causes moves. In this particular case, the idea that Chesapeake may sell $2 billion in assets is proving to be exciting to investors as they push the stock upward. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:24), CHK is trading at $3.07 per share after a gain of $0.10 per share or 3.37% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CHK. In particular, we’re interested in learning if the asset sale will or will not take place. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!