These 4 Energy Companies Have Burnt Out Today
NEW YORK ( TheStreet) -- Chesapeake Energy
Lagging the bunch, Solazyme plummeted 15.4% to $8.76, while Halcon Resources plunged 9.2% to $4.64, SandRidge dropped 7.9% to $5.99 and Chesapeake shed 5.8% to $26.50.
Chesapeake, which reported earnings before the bell Wednesday, plummeted after CEO Doug Lawler projected fourth-quarter oil production to fall around 9,000 barrels a day, due to asset sales and weather interference.
Despite the disappointing forecast, the Houston-based company reported better-than-expected third-quarter revenue of $4.87 billion, $1.38 billion higher than analysts surveyed by Yahoo! Finance had expected, and 64% higher than a year earlier. Earnings of 43 cents a share was in line with Wall Street forecasts.
TheStreet Ratings team rates Chesapeake Energy as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate Chesapeake Energy (CHK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."
- You can view the full analysis from the report here: CHK Ratings Report
Oil and gas company SandRidge Energy was been pulled lower by fellow industry stocks, despite beating earnings estimates a day earlier.
The Oklahoma City-based company earned 7 cents a share on $493.6 million in sales, beating expectations of 2 cents a share on $465.69 million. Management said it increased its full-year production forecasts to 33.6 million barrel of oil equivalent (boe) for 2013, up by 300,000 boe.
"As our Mississippian rig count ramps back up over the next few quarters, we are confident that we will be able to grow production there by approximately 35% in 2014, which will contribute to 12% year-over-year organic growth for the company," said CEO James Bennett in a statement.
TheStreet Ratings team rates SandRidge Energy INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SandRidge Energy INC (SD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and generally high debt management risk."