For Immediate Release
Chicago, IL – January 6, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Chesapeake Energy Corporation (CHK), Total (TOT), Plains Exploration & Production Company (PXP), BP America (BP) and Statoil ASA (STO).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
Chesapeake Forms JV with Total
Chesapeake Energy Corporation (CHK)has joined hands with the world’s fifth largest integrated oil and gas company Total S.A. or Total (TOT) for the development of Barnett Shale assets by creating a joint venture. Total will acquire a 25% interest in Chesapeake’s upstream Barnett Shale assets. In consideration, Total will pay $800 million in cash at closing, which is anticipated by the end of this month and subject to regulatory approval. Total will pay an additional $1.45 billion by funding 60% of Chesapeake’s share of drilling and completion expenditures until the entire obligation has been exhausted, which Chesapeake expects will occur by year-end 2012.
This is Chesapeake’s fourth joint venture transaction in the Big 4 shale plays of Barnett Shale, Marcellus Shale, Haynesville Shale and Fayetteville Shale. The other partners include world-class companies such as Plains Exploration & Production Company (PXP), BP America (BP) and Statoil ASA (STO).
The assets of the newly created joint venture include about 270,000 net acres of leasehold in the Core and Tier 1 areas of Barnett, with approximately 700 million cubic feet of natural gas equivalent per day of current net production and approximately 3.0 trillion cubic feet of natural gas equivalent (Tcfe) of proved reserves (0.75 Tcfe net to Total).
Under the terms of the agreement, Total will acquire its 25% share on promoted terms of the new acreage acquired by Chesapeake until Dec 31, 2015. After this date, Total will have to pay 25% of Chesapeake’s support costs related to the joint venture’s corporate development activities.
While we believe that a prominent negative in the Chesapeake story is its more leveraged balance sheet than the peer group, this transaction will allow the company to reduce its financial leverage. Additionally, the transaction will also support its future capital expenditure need and further position it to deliver industry-leading finding and development costs and returns on capital.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks “Profit from the Pros” e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it’s your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
