Chesapeake Energy Corporation (NYSE:CHK): Closing price $19.96
As the energy major looks at its portfolio with the idea of divestitures to bring a large chunk of cash this year, one particular asset it might consider its interest in fellow Oklahoma City energy producer, say analysts with Wells Fargo Securities. On Tuesday, they wrote in a research report that Chesapeake’s 20 percent stake in Chaparral Energy might be worth about $280 million, based on Chaparral’s 2012 earnings before interest, tax, depreciation and amortization, of roughly $340 million. That figure represents a solid growth from the $178 million Chesapeake paid for it in 2006. The now former Chesapeake Chief Executive Aubrey McClendon told The Wall Street Journal previously that the investment was made when the firm, which was then primarily a natural gas producer, wanted to add exposure to rising oil prices.
Are these stocks a buy or sell? Let us help you decide. Check out our Stock Picker Newsletter now.