Energy Stock Review: Chesapeake and BP Light Up

Preliminary court approval was granted to BP (NYSE:BP) for a settlement amounting to approximately $7.8 billion, to resolve more than 100,000 claims arising from the Gulf oil spill. Saying that the settlement was “fair, reasonable, and adequate”, the judge will issue a final ruling after a Nov. 8 hearing to address objections.

Carl Icahn’s $30 per share tender offer for CVR Energy (NYSE:CVI) expires Friday night, and the company has sent a new letter to shareholders, again recommending that they not sell their shares to the ‘activist investor’. However, Icahn says that he has gotten only 28 million shares so far, which is some 4 million short of the 32 million that his gambit requires. Shares were trading just above $30 near closing time.

Investing Insights: Gold and Silver Finish More Than 1% Lower.

CEO Aubrey McClendon’s hopes to turn Chesapeake (NYSE:CHK) around, when prices for natural gas bounce back in 2014 (if they do), but he might run out of time. According to an SEC filing, top shareholder Southeastern Asset Management could begin discussions with Chesapeake intended to raise the share price or even sell the company. In the meantime, BMO and Bernstein upgrade the shares by raising target prices to $25 and $21 respectively, as they speculate that the bottom has been reached. BMO remarked that “The company is being watched, but what remains is a company with a deep and wide asset base, and one that has fundamental value.”.

First quarter results of Transocean (NYSE:RIG) help its shares resist the general slump in energy issues in Thursday’s trading. Improvements in utilization levels and rising rig rates led the way in a quarter that Dahlman Rose anaylsts predict “will have positive implications” for the stock. At the same time Guggenheim elevates shares to Buy with a $65 price target, which is up from $46.

Shares of Ion Geophysical (NYSE:IO) jump following its first quarter report that posted a huge increase in profit , based on stronger sales. The supplier of services for the oil and gas industry predicted that its figures would improve for each remaining quarter of this year, “based on our market outlook and robust pipeline of order activity”.

Continental Resources (NYSE:CLR) shares plummeted on an overall tough day for energy stocks, following its first quarter figures that missed consensus. High operating costs were blamed, but the company had predicted a production growth of between 47 and 50 percent in 2012, from increased funding of $2.3 billion. Expectations had also been raised twice so far in the year.

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Don’t Miss: Here Are More Major Troubles For Chesapeake Shareholders.