Monday, April 5, 2010

Chesapeake Energy (NYSE:CHK) Targeting Oil

Chesapeake Energy

The abundance of natural gas which has resulted in natural gas prices plunging, has resulted in a number of natural gas companies like Chesapeake Energy (NYSE:CHK) to focus on other sources of revenue; and in the case of Chesapeake Energy that is oil.

Aubrey McClendon, Chairman and CEO of Chesapeake Energy has resisted making the move, but the refusal of natural gas prices to rise over time has forced her to reconsider, and now is changing her tune and is looking at oil as a way to diversify their assets.

McClendon recently stated the company feels they probably have enough gas to last them the rest of their lives. What she really means is the economics of natural gas is no longer as compelling as it has been, and they need to go beyond it for a more profitable future.

Chesapeake Energy

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