Company report
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15 Pages

Chesapeake Energy corporate report


Chesapeake Energy corporate report

Report summary

We continue to believe that Chesapeake has enough strategic options to avoid bankruptcy. Downside risks that could compel the company to file Chapter 11 include sub-US$2.30/mcf Henry Hub and poor execution on the asset-sale initiative. But we believe the company could reach the upper end of its divestiture target without completely losing exposure to any of its core plays, sacrificing pro-forma growth, or over-depleting its cash-flow base.

What's included?

This report includes 2 file(s)

  • Chesapeake Energy corporate report PDF - 440.73 KB 15 Pages, 5 Tables, 20 Figures
  • Chesapeake Corporate Report.xls XLS - 2.92 MB

Description

The upstream oil and gas industry conducts activities against a backdrop of growing energy and environmental challenges. Political instabilities, international conflicts and government and environmental regulation have all impacted the production process.

This has forced companies to re-examine their corporate strategy, moving away from high-risk exploratory drilling to lower-risk exploration in mature basins as they search for increased returns.

This Upstream Oil and Gas Company report offers thought-provoking insight into corporate financial health, investment strategy and operational outlook supported by our proprietary asset data and energy research experts.

Widely used by both the energy and financial sectors, our report gives you a unique perspective on key strategic and financial challenges, as well as opportunities facing this oil and gas company.

Wood Mackenzie provides an independent evaluation and expert opinion on the operational performance, strategy and future of the world's top oil and gas companies. Our unique, objective analysis helps you understand, validate, compare and challenge market and corporate views so you can assess strategic opportunities.

  • Executive summary
    • SWOT analysis
    • Summary
      • Strategic success factors
  • Strategy
    • Asset sales: what will be sold?
    • Pro-forma portfolio: scale remains, but quality continues to lag peers
    • Operational performance: aiming to improve
  • Valuation
  • Financial health
    • Financial health overview
      • Liquidity: what price scenario could trigger bankruptcy?
      • Debt management: an aggressive, but balanced, approach
      • Hedging: more protection is needed in 2017
  • Resources, reserves and production
    • Production overview
    • Resources and reserves overview
  • Portfolio summary
  • Economic assumptions
    • Full price and modelling methodology descriptions are available in the 'Methodology and Assumptions' section of the Wood Mackenzie portal. The key prices and global assumptions used in the making of this report are summarised below.
      • Low price assumptions
      • Value assumptions

In this report there are 25 tables or charts, including:

  • Executive summary
    • Executive summary: Table 1
  • Strategy
    • Divestment activity and targets
    • WM NPV10 of potential divestment candidates*
    • Portfolio benchmarking: quantity versus quality
    • Eagle Ford: Oil-IP-rate evolution
    • Haynesville: Gas-IP-rate evolution
  • Valuation
    • Enterprise value vs. WM NPV10
    • Asset-level WM NPV10
    • Share-price evolution
  • Financial health
    • Liquidity forecast: excluding planned asset sales
    • Liquidity forecast: including planned asset sales
    • Debt-principal evolution
    • Debt-maturity profile evolution
    • Percentage of production hedged: 2016 vs. 2017
    • Chesapeake gas-hedge activity evolution
  • Resources, reserves and production
    • Chesapeake: reported and forecasted production
    • Benchmark: production CAGR 2017-2022
    • Reported organic reserves replacement
    • Benchmark: WM commercial reserves life
  • Portfolio summary
    • Key assets
  • Economic assumptions
    • Base price assumptions (nominal terms)
    • Economic assumptions: Image 1
    • Economic assumptions: Image 2
    • High price assumptions
    • Economic assumptions: Table 3
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Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

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