Chesapeake Energy

Tyler Durden's picture

Money Printing And The Bane Of Financial Engineering - How The Biggest LBO In History Blew-Up





Financial engineering is one of the worst ills perpetuated by the Fed’s regime of cheap debt and money market subsidies for speculation. And these deformations are turbo-charged by the tax code which creates a powerful bias toward loading capital structures with tax deductible debt, and to delivering returns as lightly taxed capital gains rather than ordinary income. In fact, stock buybacks and LBOs are the bastard offspring of the IRS and Federal Reserve.

 
Tyler Durden's picture

Could Oil Prices Plummet A Second Time?





Are oil prices heading for a double dip? The surge in shale production has produced a temporary glut in supplies causing oil prices to experience a massive bust. After tanking to a low of $44 per barrel in January, falling rig counts and enormous reductions in exploration budgets have fueled speculation that the market will correct sometime later this year. However, there is a possibility that the recent rise to $51 for WTI and $60 for Brent may only be temporary. In fact, several trends are conspiring to force prices down for a second time.

 
Pivotfarm's picture

EYES ON FED CHAIR YELLEN AS TESIMONY CONTINUES





and other things to keep an eye on today

 
Tyler Durden's picture

Frontrunning: February 18





  • Greece to submit loan request to euro zone, Germany resists (Reuters)
  • Ukrainian forces start to quit besieged town (Reuters)
  • Bank of Japan maintains policy, no surprises (FT)
  • China Considering Mergers Among Its Big State Oil Companies (WSJ)
  • Soros Shifts to Europe, Asia as Investors Cut U.S. Equities (BBG)
  • Putin tells Kiev to let troops surrender as Ukraine ceasefire unravels (Reuters)
  • Venezuela Squanders Its Oil Wealth (BBG)
  • Swiss prosecutor raids HSBC office, opens criminal inquiry (Reuters)
 
Tyler Durden's picture

These Shale Companies Will File For Bankruptcy First: Goldman's "Best And Worst" Shale Matrix





Over a month ago we presented a ranking of "America's most levered energy companies." Since then they have all, without exception gotten clobbered, not only in their publicly traded stock but also their debt. Today, long after the liquidation whirlwind has left junk bond owners dazed and confused, Goldman catches up, and lays out a matrix of shale companies sorted not only by leveraged (they see 2.5x as the cutoff; we used 4.0x) but also by shale asset quality. From there, it also lays out the various opportunities, if any, available to the management teams in the resultant 4 quadrants. Readers will be most interested in the "restructuring/bankruptcy" option, most applicable for Group 4, because these are the names which,  all else equal, will file for bankruptcy first.

 
Tyler Durden's picture

An Endless Sea Of Energy





With crude oil prices in a strong corrective mode, energy depletion is understandably not on people’s minds these days. However, this is a scenario that many of us might have to deal with at some point in our lifetimes. We might be swimming in oil for now, but this should be no reason to become complacent. Our children and grandchildren will thank us for it.

 
Tyler Durden's picture

Frontrunning: November 25





  • Ferguson in Flames (Reuters)
  • Ferguson Cop Told Grand Jury He Feared for His Life (BBG)
  • Sharpton: Grand Jury Announcement ‘An Absolute Blow’ (Daily Caller)
  • Gunshots echo as violence returns to Ferguson, protests across U.S. (Reuters)
  • BoJ members warned on costs of more easing (FT)
  • Hagel Exit Shows Obama Has Taken Power Away From Pentagon (BBG)
  • Ukraine leader, under pressure from West, pledges new government soon (Reuters)
  • Eurozone Stagnation Poses Major Risk to Global Growth, OECD Warns (WSJ)
  • ECB’s Coeure Says Officials Won’t Rush as They Debate All Assets (BBG)
 
Tyler Durden's picture

These 7 Firms Paid Their CEO Over 60% More Than Uncle Sam





Seven of the 30 largest U.S. corporations paid more money to their chief executive officers last year than they paid in U.S. federal income taxes, according to a new study by Center for Effective Government and Institute for Policy Studies. As Reuters reports, the study said the seven companies, which in 2013 reported more than $74 billion in combined U.S. pre-tax profits, came out ahead on their taxes, gaining $1.9 billion more than they owed... and at the same time their CEOs were paid - on average - over $17 million each. While some of the firms dispute the findings, the study concludes its findings reflected "deep flaws in our corporate tax system."

 
Tyler Durden's picture

As Fracking Enters A Bear Market, A Question Emerges: Is The Shale Boom Built On A Sea Of Lies?





"The audience in the ballroom of the Hotel Derek included engineers for shale drillers such as Marathon, Continental and Rice. Pamela Allen, a senior reserves coordinator for Marathon, raised her hand and told Lee that she was worried that using outsized forecasts in public presentations would run afoul of the SEC and “come back to haunt us.” Singhania, the Marathon spokeswoman, said she was unable to comment on Allen’s remarks without seeing a transcript. “If a lot of people get burned -- and I think a lot of people can and will be burned -- by these numbers in the investor presentations, there may be a push by investors to get the SEC to do something about it,” Lee said during the workshop."

 
Tyler Durden's picture

Frontrunning: July 19





  • Fighting erupts in Ukraine as crash investigators arrive (Reuters)
  • Russian Billionaires in ‘Horror’ as Putin Risks Isolation (BBG)
  • Israel kills militants entering from Gaza, death toll tops 500 (Reuters)
  • The other Gaza: In violent weekend, at least 40 people shot in Chicago (Reuters)
  • Barclays Dark Pool Drew Early Alarms (WSJ)
  • Finance Industry Bonus Hit in Poll as Revenue Disappoints (BBG)
  • Severstal to Sell North American Units (WSJ)
  • Yum, McDonald's apologize as new China food scandal brews (Reuters)
  • Yellen Wage Gauges Blurred by Boomer-Millennial Workforce Shift (BBG)
  • Ukraine Offers to Hand Over Malaysia Airlines Probe to Dutch (WSJ)
 
Tyler Durden's picture

Do Any Of These Family Dollar Calls Belong To Phil Mickelson?





While the bulk of the just announced Icahn activist foray into yet another company, this time Family Dollar, is cut and dry, we can't help but wonder: was Phil Mickelson the person buying all those FDO calls just after noon today?

 
Tyler Durden's picture

The New Normal In One Sentence: "In The US Equity Market, The Worse A Company’s Finances, The Better It’s Doing"





It was just last Friday when we updated our list of the most hated, i.e., most shorted, stocks which are so critical in the New Normal because as we have reported constantly since 2012, going long the most shorted names remains the best alpha-generating strategy, outperforming the broader market by orders of magnitude. Today, it is Bloomberg's turn to recap just how broken the market is with an article that highlights the "balance sheet bombs" rallying by 94%. The lede: "In the U.S. equity market, the worse a company’s finances, the better it’s doing." Because there is nothing like rewarding failure and capital misallocation to promote economic growth and employment recovery.

 
Tyler Durden's picture

Frontrunning: March 12





  • China worries chill markets, copper slumps (Reuters)
  • Peak dot com dot two idiocy: Candy Crush Saga maker King seeks $7.56 bln valuation from IPO (BBG)
  • Obama Meeting With Yatsenyuk Raises Stakes in Ukraine (BBG)
  • Federal prosecutors open criminal probe of GM recall (Reuters)
  • Pimco Cuts Government Debt on Outlook for Fed Buying (BBG)
  • Missing Malaysian Jetliner Confuses World That’s Online 24/7 (BBG)
  • Mortgage Giants Face Endgame (WSJ)
  • Russia Calls U.S. Aid to Ukraine Illegal Amid Standoff (BBG)
  • U.S. judge freezes assets of Mt. Gox bitcoin exchange boss (Reuters)
  • Ousted Libyan PM flees country after tanker escapes rebel-held port (Reuters)
  • Senate-CIA Dispute Erupts Into a Public Brawl (WSJ)
 
Tyler Durden's picture

Frontrunning: December 30





  • Americans on Wrong Side of Income Gap Run Out of Means to Cope (BBG)
  • Michael Schumacher battles for life after ski fall (Reuters)
  • Professors for hire: Academics Who Defend Wall St. Reap Reward (NYT)
  • Chinese police kill eight in Xinjiang 'terrorist attack' (Reuters)
  • How to Prevent a War Between China and Japan (BBG)
  • Unemployment Benefits Lapse Severs Lifeline for Longtime Jobless (BBG)
  • Japan's homeless recruited for murky Fukushima clean-up (Reuters)
  • China Local-Government Debt Surges to $3 Trillion (WSJ)
  • How unexpected: Britons less inclined to pay down mortgage debt (Reuters)
 
Tyler Durden's picture

Frontrunning: November 15





  • China to Ease One-Child Policy (WSJ), China announces major economic and social reforms (Reuters)
  • Consumers line up for launch of PlayStation 4 (USAToday)
  • Trust frays between Obama, Democrats (Politico)
  • Yellen Stands by Fed Strategy  (Hilsenrath)
  • Hero to zero? Philippine president feels typhoon backlash (Reuters)
  • Brussels warns Spain and Italy on budgets (FT)
  • Moody’s Downgrades Four U.S. Banks on Federal Support Review  (BBG)
  • CIA's Financial Spying Bags Data on Americans (WSJ)
  • Germany Digs In Against Risk Sharing in EU Bank-Failure Plan (BBG)
  • Bill Gates wants Norway's $800 billion fund to spend more in Africa, Asia (RTRS)
 
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