CHK- Chesapeake energy corporation

>>1087913
Are you retarded? CHK has been dead in the water for a year now. The latest leg down is cause they hired lawyers to restructure. We can debate whether or not they will file, but this wasn't the result of a hitpiece.
>oh look a tripfaf doesnt know what hes talking about. Color me surprised

>>1087922

Chesapeake orchestrated the whole thing.

They leaked the info, to scare the people that own the pipeline and the CONTRACT THAT STOPS CHESAPEAKE FROM MAKING MONEY.

The pipeline owners are PISSING THEIR PANTS now that Chessapeake will file for bankruptcy-

Chessapeake, Monday morning next week, is going to march in there and renegotiate the contract, leaving a viable company in it's wake.

The second news that the contract was restructured hits the press, the share will go to $10.

CHK will operate it's wells profitably, gas will go up, and the price per share will go to $50.

You don't know ANYTHING other than what the hit piece told you- that CHK had contacted a bankruptcy firm

>>1087913
a short squeeze yah say?

let /r/wallstreetbets know

>>1087922

Let me explain very simply what people think and the reality.

The reality is there is a contract for pipeline use that means CHK will NEVER make money unless the price of gas goes up 250%.

The people that own the pipeline are terrified that CHK will shut down, or the creditors will renegotiate.

So, they will renegotiate with CHK instead of waiting for Chapter 11.

The creditors will restructure the debt as a mortgage on the wells.

Share price will skyrocket.

Every SUCKER out there about to lose every penny he has thinks CHK is going to file.

>>1087929
>>1087943
Ok I was a little harsh at first. You do understand a couple things surrounding the situation. The bankruptcy lawyers hiring was the result of a company filing, however. Not a shortside article. It would be illegal to not disclose that.

I do agree that to avoid bankruptcy, they will have to renegotiate the pipeline contract, but it's not like they wouldnt have to anyways on the other side of chapter 11 court. Say CHK files and goes through court. They still need the pipeline to transport gas. BK isnt as big a bargaining chip as you think. At no point would gas stop flowing through that pipeline. The owners may decide it would be better to collect fat checks until CHK defaults on an interest payment and then have the high hand at the table post Chapter 11.

Any squeeze on an energy stock is a bit farfetched, IMO, given how much trouble they're all in. I've watched BTU announce debtswaps and huge asset sales with no response from the market, and theyre in much better shape than CHK. When every energy stock is trading binary, where is the grounds for a squeeze? You either think theyll make it or you dont, and asset sales/renogiations hardly guarantee anything.

>>1087966

It's going to the moon.

Cramer is going to buy a $100,000 bag of cocaine, get on mad money, say it's going bankrupt, buy millions of shares himself, we renegotiate, the short sellers get squeezed LIKE ZITS.

>>1087966

> At no point would gas stop flowing through that pipeline.

Incorrect.

The pipeline operators have been emailed a mail that explains, very clearly, that if the creditors do take possession of the wells, they will SHUT THEM DOWN.

Because they DON'T OPERATE PROFITABLY.

There are a lot of wet strains on people's pants right about now.

>>1087966

The immediate future: Pipeline operator agrees to a restructuring that leaves them with next to nothing.

That's it- end of story.

>>1088012
Why would they do this? Those assets are worthless without the pipeline. You can't truck natgas out.

>>1088018

At current contract prices, those plants WONT be profitable until the price of nat gas goes up 250%- end of story.

This is clear to everyone. The pipeline owners. The creditors . The stockholders.

So, either they are shut down, and ripped apart by welders for scrap metal, OR the pipeline owners bend over and accept CHK using the pipelines for next to nothing.

The bank WILL turn off the plant just to *punish* the pipeline owners.

That's why it will NEVER happen.

>>1087913
Why would the shorts have to cover so soon? Also what makes you think this company will be worth $10bln+ again?

>>1088035

Solar and wind are a joke.

Coal is a dirty word.

Natural gas is the future.

Those that control those wells owns the means of production.

The creditors have ZERO interest in selling the wells for pennies on the dollar to Boone Pickens

>>1088022
Who owns this pipeline?

>>1088035

This is a 50B$ company. The creditors know that. They don't want to sell the wells for 50M$.

CHK bonds are good as gold.

>>1088022
Yes, its obvious they will have to renegotiate, but my question is:

Why negotiate a longterm contract at $2 gas, when they could continue collecting triple-size checks from CHK till they file? CHK either sells the assets and the pipeline owners negotiate with the new owners or they have to negotiate a new deal anyway with post Chapter 11 CHK.

>>1088039

I'm shorting them. 10 people I called on the phone are shorting them. Next week or two, they'll call 10 people each, who will call 10 people...

They've been making money hand over fist forever. The music just turned off- it's to the CLEANERS for them,

>>1088044

Wrong. The pipeline owners are freaking out. The creditors will just say 'fuck this and fuck you' and sell the wells for 50 million.

The pipeline owners can buy them- except they can't.

The pipeline owners know it. I know it. I smell the blood in the water.

>>1088048
>sell the wells for 50mm
..to someone who needs the pipelines. You're talking in circles. Slow down and think this through

>>1088051

No.

Whoever buys them for 50 million is going to sell all the trucks, etc, cash that check, then just sit on the wells for 5 years and wait for the nat gas price to go $10.

The pipeline owners do NO BUSINESS until that happens.

Do you understand that? The largest Natural Gas producer in that region of the world in the HISTORY OF MANKIND is going to stop doing business with the pipeline

We're buying up millions of dollars in nat gas soon, millions in CHK stock now.

>>1088046
Unless the line owners are desperate for cash flow why would they make a bad deal to save Chesapeake?

Can they even drop their rates on that line and still make a profit or is it going to be better off for them to just let it go dark?

>>1088061
They cant shut it down. Aubrey McClendon signed a retarded deal where they pay regardless of whether any gas goes through the lines

>>1088061

They run the pipeline with no expenses, forever, getting paid insane amounts of money.

We're shorting them soon- gonna hit them in the head with a brick.

To make things even easier, multiple companies own the pipeline.

They will fall like dominoes if they don't play ball with us.

>>1088056
Lol well good luck, anon. IMO CHK files this year. Were they to be forced to sell some of their best assets for 50mm, I would say sooner than later. I think you are vastly overestimating the negotiating power they have here.

>>1088068
>IMO CHK files this year.

Don't put your money where your mouth is.

You'll regret it.

>I think you are vastly overestimating the negotiating power they have here.

They have a loaded gun and an itchy trigger finger.

>>1088069
The next company to own those wells will have to use the same pipeline.

Sounds like it's a better deal for the pipeliners to suck Chesapeake dry and negotiate with whoever picks up their wells if their not desperate for cash flow.

>>1088077

What don't you understand?

There WONT be a company using those wells, unless the pipeline owners take pennies on the dollar.

So you know what? The pipeline owners are going to take pennies on the dollar, like it or not.

Why the fuck is this shill using a secure trip?

>>1088079
They can squeeze the last bit of life out of chesapeake before taking pennies on the dollar with whoever buys the wells when their dead.

>>1088083

Because he read it on the info page?

>>1088079
I just dont see it. SOMEONE is gonna pump gas through those lines. And they will have to pay to do so. Obviously less than CHK management was stupid enough to agree too. But the pennies-on-the-dollar scenario makes no sense.

You could look to rail companies for a sort of comparison. Many southern rail cos have adjusted rates for BTU and CLD to make transportation of coal more affordable. They are willing to work with companies to maintain contracts, but understand that in some way shape or form, that coal is coming out of the ground and reaching the plants by freight. Unless distressed coal cos plan to build new rails. The same should apply here. The "toll" companies almost always have the upper hand

>>1088084
This exactly. It doesnt cost much money to sit on a pipeline even if it did go empty. 6 months of exorbatant rates followed by nothing for a bit or a renegotiated rate in court makes more sense than "pennies on the dollar" tomorrow

>>1088092

It's gonna be nothing, real soon. Unless they play ball- that's it.

End of story.

>>1088087

>someone is going to pump gas

BZZT Wrong!

>>1088087

> The "toll" companies almost always have the upper hand

Not if they lose huge % of their business.

The balance sheet next year is going to show $0 in revenue on CHK accounts, only maintenance costs, depreciation.

That is a INDISPUTABLE FACT

>>1088096
Whyd you drop the trip? You keep repeating statements, but not providing any actual reasons you want us to believe these things. We're not all dumb here, just autistic bro

>>1088100

Just need the trip so when people see CHK at $10 they will take my next call seriously

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>>1088179
>>1088096
>>1088079
>shilling this hard
So lemme guess big guy. You come on a chinese cartoon imageboard to give anonymous neet shitposters insider tips. You try to convice people on the internet to buy a virtually broken oil and gas company. With WTI heading towards 10$ per barrel

Flashnews mister; price would have discounted your "insider tip" already if there was a shred of truth in your wild fantasies. This is just a pathetic pump and dump. Will wait until price heads back, courtesy of all the good goys who thought they made a deal, and then short it.

And fuck you if you had to take a mortgage to buy this crap, imma take your money and you're going to be the one sucking dicks under a bridge.

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>>1087913
you guys should wait until the fundamentals improve. it's better to get this company when its debt is managable and it's profitable at 5/share than try to guess if you'll make out in bankruptcy court
>>1088911
i fear the day /biz/ becomes a serious wallstreet player