Chesapeake Energy Reports Strong Revenue On Natural Gas Hedges

Chesapeake Energy Corp. (NYSE CHK) announced on Thursday that its adjusted third-quarter earnings climbed 47 percent.

CHK, which is the largest natural gas producer in the U.S., reported $486 million, or 85 cents a share, for the quarter ended Sept. 30, compared with $346.3 million, or 72 cents per share, a year ago.

Year to date, Chesapeake said it has made $1.5 billion, or $2.73 per share, compared with $1.1 billion, or $2.10 per share, a year ago. Revenue rose to $8.6 billion for the year from $5.7 billion.

Revenue nearly quadrupled to $7.5 billion in the quarter because of the hedges from $2 billion a year ago.

Natural Gas Inventory Report 10-16-08

Working gas in storage was 3,277 Bcf as of Friday, October 10, 2008, according to EIA estimates. This represents a net increase of 79 Bcf from the previous week. Stocks were 87 Bcf less than last year at this time and 85 Bcf above the 5-year average of 3,192 Bcf. In the East Region, stocks were 84 Bcf above the 5-year average following net injections of 46 Bcf. Stocks in the Producing Region were 15 Bcf below the 5-year average of 907 Bcf after a net injection of 25 Bcf. Stocks in the West Region were 17 Bcf above the 5-year average after a net addition of 8 Bcf. At 3,277 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 10-09-08

Working gas in storage was 3,198 Bcf as of Friday, October 3, 2008, according to EIA estimates. This represents a net increase of 88 Bcf from the previous week. Stocks were 117 Bcf less than last year at this time and 69 Bcf above the 5-year average of 3,129 Bcf. In the East Region, stocks were 76 Bcf above the 5-year average following net injections of 44 Bcf. Stocks in the Producing Region were 23 Bcf below the 5-year average of 890 Bcf after a net injection of 35 Bcf. Stocks in the West Region were 16 Bcf above the 5-year average after a net addition of 9 Bcf. At 3,198 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 10-02-08

Working gas in storage was 3,110 Bcf as of Friday, September 26, 2008, according to EIA estimates. This represents a net increase of 87 Bcf from the previous week. Stocks were 137 Bcf less than last year at this time and 50 Bcf above the 5-year average of 3,060 Bcf. In the East Region, stocks were 74 Bcf above the 5-year average following net injections of 51 Bcf. Stocks in the Producing Region were 39 Bcf below the 5-year average of 871 Bcf after a net injection of 24 Bcf. Stocks in the West Region were 15 Bcf above the 5-year average after a net addition of 12 Bcf. At 3,110 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 9-25-08

Working gas in storage was 3,023 Bcf as of Friday, September 19, 2008, according to EIA estimates. This represents a net increase of 51 Bcf from the previous week. Stocks were 162 Bcf less than last year at this time and 35 Bcf above the 5-year average of 2,988 Bcf. In the East Region, stocks were 69 Bcf above the 5-year average following net injections of 33 Bcf. Stocks in the Producing Region were 46 Bcf below the 5-year average of 854 Bcf after a net injection of 6 Bcf. Stocks in the West Region were 12 Bcf above the 5-year average after a net addition of 12 Bcf. At 3,023 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 9-18-08

Working gas in storage was 2,972 Bcf as of Friday, September 12, 2008, according to EIA estimates. This represents a net increase of 67 Bcf from the previous week. Stocks were 142 Bcf less than last year at this time and 61 Bcf above the 5-year average of 2,911 Bcf. In the East Region, stocks were 86 Bcf above the 5-year average following net injections of 48 Bcf. Stocks in the Producing Region were 33 Bcf below the 5-year average of 835 Bcf a net injection of 7 Bcf. Stocks in the West Region were 9 Bcf above the 5-year average after a net addition of 12 Bcf. At 2,972 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 9-11-08

Working gas in storage was 2,905 Bcf as of Friday, September 5, 2008, according to EIA estimates. This represents a net increase of 58 Bcf from the previous week. Stocks were 146 Bcf less than last year at this time and 82 Bcf above the 5-year average of 2,823 Bcf. In the East Region, stocks were 94 Bcf above the 5-year average following net injections of 47 Bcf. Stocks in the Producing Region were 18 Bcf below the 5-year average of 813 Bcf a net injection of 2 Bcf. Stocks in the West Region were 6 Bcf above the 5-year average after a net addition of 9 Bcf. At 2,905 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 9-04-08

Working gas in storage was 2,847 Bcf as of Friday, August 29, 2008, according to EIA estimates. This represents a net increase of 90 Bcf from the previous week. Stocks were 148 Bcf less than last year at this time and 102 Bcf above the 5-year average of 2,745 Bcf. In the East Region, stocks were 100 Bcf above the 5-year average following net injections of 67 Bcf. Stocks in the Producing Region were 1 Bcf below the 5-year average of 794 Bcf a net injection of 16 Bcf. Stocks in the West Region were 3 Bcf above the 5-year average after a net addition of 7 Bcf. At 2,847 Bcf, total working gas is within the 5-year historical range.

Natural Gas Inventory Report 8-28-08

Working gas in storage was 2,757 Bcf as of Friday, August 22, 2008, according to EIA estimates. This represents a net increase of 102 Bcf from the previous week. Stocks were 200 Bcf less than last year at this time and 71 Bcf above the 5-year average of 2,686 Bcf. In the East Region, stocks were 78 Bcf above the 5-year average following net injections of 69 Bcf. Stocks in the Producing Region were 8 Bcf below the 5-year average of 785 Bcf a net injection of 25 Bcf. Stocks in the West Region were 1 Bcf above the 5-year average after a net addition of 8 Bcf. At 2,757 Bcf, total working gas is within the 5-year historical range.

Natural gas futures are up $0.18 per Mbtu on concerns that Gustav may enter the Gulf of Mexico.

Natural Gas Inventory Report 8-21-08

Working gas in storage was 2,655 Bcf as of Friday, August 15, 2008, according to EIA estimates. This represents a net increase of 88 Bcf from the previous week. Stocks were 264 Bcf less than last year at this time and 26 Bcf above the 5-year average of 2,629 Bcf. In the East Region, stocks were 54 Bcf above the 5-year average following net injections of 67 Bcf. Stocks in the Producing Region were 26 Bcf below the 5-year average of 778 Bcf a net injection of 16 Bcf. Stocks in the West Region were 2 Bcf below the 5-year average after a net addition of 5 Bcf. At 2,655 Bcf, total working gas is within the 5-year historical range.

Natural Gas Remains Oversold

Natural gas prices remain below the 200 day moving average with a Williams %R reading of -82.67

A reading of -80 to -100 is considered oversold.

China National Petroleum Eyes U.S. Natural Gas

HONG KONG, July 28 (Reuters) - China National Petroleum Corp (CNPC), China's top state oil firm, is thinking of bidding for minority stakes in shale gas assets of Chesapeake Energy Corp, according to a local newspaper report.

Chesapeake is looking to raise as much as $5 billion this year from selling minority stakes in its Arkansas and Pennsylvania shale gas properties, the South China Morning Post reported on Monday, citing unnamed market sources.
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Natural gas futures gained 13.7 cents to $13.526 per 1,000 cubic feet.

July natural gas futures rose 13.3 cents to settle at $12.994 per 1,000 cubic feet in trading on the NYMEX.