|
Category: Investment, Natural Gas
Mergermarket Calls Chesapeake Energy (NYSE: CHK) Top Natural Gas Acquisition Candidate
By Senior Energy Industry Executive Karl W. Miller
January 29, 2010
Energy Commentary from Karl Miller - Read Bio and More info
For public interest, Karl W. Miller, a senior energy executive and institutional investor today issued the following statement through his advisors regarding consolidation in the U.S. Natural Gas Industry.
On December 10, 2009, Mr. Miller published analysis entitled "Energy (NYSE: CHK) Attractive Acquisition Candidate at a Discount". Mr. Miller has also been a proponent of a merger between Occidental Petroleum (NYSE: OXY) and Chesapeake, citing the synergies that the combined companies would generate.
To see Mr. Miller's full report "Combining Occidental Petroleum (NYSE: OXY) and Chesapeake Energy" go to http://seekingalpha.com/instablog/522236-karl-w-miller/46156-combining-occidental-petroleum-nyse-oxy-and-chesapeake-energy-nyse-chk
On Thursday January 29, 2010, Charlie Welsh, editor-in-chief for Mergermarket, said Thursday at a conference in Houston Natural gas producers Chesapeake Energy, Devon Energy, Range Resources and, are among top acquisition candidates. Others include Anadarko Petroleum Corp., Murphy Oil Corp. and Newfield Exploration Co.; He also listed Marathon Oil Corp., Occidental Petroleum Corp. and Petrohawk Energy Corp.
Mergermarket is a research and data firm that tracks mergers and acquisitions globally. Welsh said the list is based on Mergermarket's research, analyst reports and company data.
Mr. Miller's initial investment note on CHK is listed below
Chesapeake Energy (NYSE: CHK) Attractive Acquisition Candidate at a Discount
December 10, 2009
| About stocks: CHK
Leverage and producing natural gas assets and undeveloped reserves profile is the rationale to own Chesapeake Energy (NYSE:CHK) for a levered equity return. CHK is a pure play on U.S. Natural Gas, essentially a futures contract, albeit with less risk of price deterioration than a true financial futures contract as its stock price is backed by real producing assets. On a pure asset basis, CHK common equity is significantly undervalued.
The probability that CHK asset portfolio is acquired has risen dramatically and recent large investor movements indicate positioning to influence and benefit from either an outright sale of the company or significant asset dispositions once controlled properties come to full production. CHK already controls the proven reserves and has achieved significant leverage; therefore the company is positioned for a sale or unsolicited third party bid.
As mentioned, CHK is significantly levered. CHK leverage, strong production profile, and discount to its peer group on a price to earnings basis make it an attractive discounted asset candidate.
There will again be energy shortages in the U.S., increased fuel price volatility, and a marked need for new clean power generation, primarily natural gas derived due to its moderate construction time, proven efficiency and security of fuel supply.
Mr. Miller also called the natural gas revival and the demise of the flawed renewable energy initiative in June 2009. To view Mr. Miller's full report: "U.S. Renewable Energy: A Self-Inflicted Crisis in the Making" to go the following link: http://www.investorideas.com/News/062909c.asp
Mr. Millers Office
About the Author:
Mr. Miller is a globally recognized energy executive and institutional investor with a balance of both financial and energy sector expertise. Mr. Miller began his career on Wall Street during the 1980s and has an extensive background in banking, commodities trading and risk management.
Mr. Miller is acclaimed for multiple ground breaking market calls and investments, including the U.K switching from a net gas exporter to a net gas importer in 2000, called the California energy crisis in 2001, called the Ethanol and Bio diesel boom and bust in 2007, called the renewable energy boom and bust cycle underway in 2008, and most recently called the revival of natural gas in the United States in 2009.
Mr. Miller has a long history in the global energy business and has held a variety of executive management positions both within the United States, Europe and Asia. Mr. Miller has bid on over $25 billion in energy related assets during his career.
Mr. Miller has built, restructured and managed energy businesses for major public energy companies on several continents, including PG&E Corporation, Electricitie de France, El Paso Energy, Enron Corporation and JPMorgan Chase.
Mr. Miller holds an MBA in Finance from the Kenan-Flagler Business School at The University of North Carolina, Chapel Hill. Mr. Miller also holds a B.A. in Accounting from Catholic University located in Washington DC.
Disclaimer:
This column, Energy Commentary from Karl Miller, is the opinion of Karl Miller.
Content found in the articles is subject to the terms found in the InvestorIdeas.com disclaimer and does not represent a recommendation of investment advice. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.
Published at the Investor Ideas Newswire
Investors: Sign up for free newsletter, stock and sector news alerts at Investorideas.com - Or publish your own stock picks and share your investing and trading ideas with other investors. Publish your investor ideas today!
Investorideas.com goal for 2010: 'One Million Members Stronger', empowering one million investors to invest in innovation and technology for a better world. Join us today!
Disclaimer: The following news is paid for and /or published as information only for our readers. Investorideas.com is a third party publisher of news and research .Our sites do not make recommendations, but offer information portals to research news, articles, stock lists and recent research. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. This site is currently compensated by featured companies, news submissions and online advertising.
|
