Are low oil prices helping or hurting you?

[LOKNLOD]

I work at CHK. Everyone is very nervous about layoffs right now, and it's really slugging morale. Rumors are rampant, nothing would shock me, but I'm hesitant to believe anything in particular either because of that.

I haven't heard anything regarding specifics yet, and have some personal (from long before either of us were at CHK) friends in HR, who I hope would give me some sort of heads up on the down low if they knew something was coming.

Various folks in my group have a sort of pool going. Hot money with the old timers is on either the 15th or 29th, something to do with pay period accounting. Apparently on the previous rounds, it went down on Tuesdays after payday. Tomorrow is payday.

 

[Okey-Dokey]

I'm hearing rumors about CHK at my work, too. Sounds like there was a slight exodus of significant others of my co-workers who worked at CHK, but still stay in touch with people who continue working there. Although the rumors I'm hearing are more in tune with the whole company going under than layoffs but I'm chalking that up to normal human drama.

 

[Shadowrider]

CHK isn't going under. Now Sandridge is another matter, I think they are already under, they just ain't figured it out yet.

CHK is way too juicy in their land holdings to fold, they have a killer portfolio of land. As they work their debt down they'll be a ripe fruit for a buyout, but I think it's too early for that. CHK isn't going away, but it will be "lean" for awhile.

 

[LOKNLOD]

I think Shadowrider is on the right track. Management seems genuinely surprised somebody has bought them "yet". I think that's because the industry still doesn't collectively see a horizon on this downturn yet -- it's a timing game as to when you're willing to take on the burden/benefits of acquiring a co with CHK's situation. If you're in a position to buy, instead of be bought, in this maker you've probably been smart with your financial, and smart money buys when the upside is larger than the downside - not yet.

 

[Shadowrider]

Lok they haven't been bought out because their debt is still too high. Two things will change that.
1) A spike in NG prices which will shrink the percentage of debt on the balance sheet.
2) Time. CHK has been working to reduce their debt and they have had some success in doing that. As time goes by they will keep chipping away at it and it will become "palatable" to one of the big guys like ExxonMobil, ConocoPhillips, Marathon, etc.
And to a lesser extent:
3) If congress gets off their ass and repeals the export ban. That would help the industry as a whole.

As it stands right now I'm torn on buying back into CHK stock. If one has the money to let it ride for awhile, now would be good because I'm pretty sure CHK stock is near it's bottom. Maybe not completely there but pretty close. I don't have the cash to just throw at it and wait a couple of years, I have to be in a shorter term "mode" right now, but if one did have the cash to let it sit awhile they would do well I think.

 

[LOKNLOD]

Buying them (Us) now would be like taking a bite of a **** sandwich, but not knowing how long you've got to chew it for. The majors could maybe afford to take the bite if they knew they would swallow it fast, but with so much uncertainty for now it would be like having to chew it indefinitely. Not worth it.

CHK is trying but not reducing debt fast enough. Burning about $1B/quarter right now.... Started the year with $4B and have $2B left.

I don't have the fix, but it's gotta be something major.

 

[vdub]

Work at CHK as well. Some of this is new news to me but have heard rumors of layoffs coming in middle September. Since I am kind of an oddity in CHK, I typically learn about things last.

 

[montesa]

Work at CHK as well. Some of this is new news to me but have heard rumors of layoffs coming in middle September. Since I am kind of an oddity in CHK, I typically learn about things last.

I worked for Access right after the CHK split. Why are you and oddity?

 

[SlugSlinger]

I worked for Access right after the CHK split. Why are you and oddity?

Are you with access/williams?

 

[montesa]

Are you with access/williams?

Yes I am. You?