Chesapeake Energy Gets A Price Cut By Analysts Post Asset Sale Deal: Here's Why
Portfolio Pulse from Lekha Gupta
Analysts have lowered the price target for Chesapeake Energy Corp (CHK) following its announcement to sell its remaining Eagle Ford assets to SilverBow Resources Inc (SBOW) for $700 million. The analysts expect the company to use the proceeds for share repurchases or acquisitions. However, the deal is considered immaterial given the scale of CHK's other assets. The price of CHK shares has fallen by 1.8%.
August 15, 2023 | 6:04 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Analysts have lowered the price target for Chesapeake Energy Corp following its asset sale to SilverBow Resources Inc. The company's shares have fallen by 1.8%.
The sale of assets is expected to be used for share repurchases or acquisitions, which could potentially increase the company's value. However, the deal is considered immaterial given the scale of CHK's other assets, which has led to a decrease in the company's share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
SilverBow Resources Inc has purchased the remaining Eagle Ford assets from Chesapeake Energy Corp for $700 million.
The acquisition of assets from CHK could potentially increase the value of SBOW. However, the impact of this deal on SBOW's share price is not mentioned in the article.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80