Chesapeake Energy Corporation (NYSE: CHK)
Shares of CHK have steadily slid over the past few months, losing nearly 50% of its value since February 2015. However, at this point there are some compelling reasons to look at CHK for a low risk longer term investment.
First, CHK has taken great strides in revamping its balance sheet by significantly slashing costs.
Secondly, the company has many catalysts outside of activist investor Carl Icahn, such as the imminent export demand, and that coupled with the attractive internal metrics of the company actually reflects CHK is undervalued in comparison with its peers.
Finally, the most interesting point I believe is that the well known activist investor, Carl Icahn, boosted his stake in the company by 10% to over $1 billion dollars just in the last quarter.
Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas and natural gas liquids (NGL) from underground reservoirs in the United States. Yahoo! Finance
Energy XXI Ltd. (NASDAQ: EXXI)
EXXI just recently announced it had entered into an agreement to monetize the Grand Isle Gathering System, a deep sea pipeline system, to CorEnergry Infrastructure Trust Inc (NYSE: CORR) for a deal worth $245 million.
Chief Executive Officer of CORR, David Schulte, had the following comments:
“We are pleased to acquire the Grand Isle Gathering System (GIGS), a critical midstream infrastructure asset serving large oil-producing fields on the Gulf of Mexico shelf. Energy XXI is a quality operator with a dedicated team focused on increasing production and reserves in the GIGS area. The long-lived system, including the onshore facilities, will further diversify our growing infrastructure portfolio.”
Energy XXI (Bermuda) Limited is engaged in the acquisition, exploration, development, production, and operation of oil and natural gas properties onshore in Louisiana and Texas, and on the Gulf of Mexico. Yahoo Finance!
Magnum Hunter Resources Corp. (NYSE: MHR)
MHR has suffered a steady grind lower since the beginning of 2014 and has yet to see any sign of an attempt to recouping those losses. However, during this time MHR has worked diligently to shore up its balance sheet with multiple new land acquisitions and now owns over 300,000 acres in North America with land in the Marcellus, Utica, and Williston Basin; all premier shales which are showing signs of being abundant.
As MHR continues to streamline, this is a great opportunity to initiate a position long as the stock is at 3 ½ year lows.
Magnum Hunter Resources Corporation is an independent oil and gas company engaged in the exploration for and the exploitation, acquisition, development and production of crude oil, natural gas and NGLs resources in the United States and Canada. We are presently active in three unconventional shale resource plays in North America, specifically, the Marcellus Shale in West Virginia and Ohio; the Utica Shale in southeastern Ohio and western West Virginia; and the Williston Basin/Bakken Shale in North Dakota and Saskatchewan, Canada. We are also engaged in midstream and oilfield services operations, primarily in West Virginia, Ohio and Texas. Magnum Hunter Resources