Energy Biz Review: Chesapeake Chairman in the HOT SEAT, USEC POPS
USEC (NYSE:USU) shares pop following the news that the firm reached a $350 million arrangement with the Energy Department, for a cooperative research, development and demonstration program. The purpose of the project is to confirm the technical readiness of the American Centrifuge, which is called “the next-generation U.S. uranium enrichment technology”.
Midstates Petroleum (MPO) shares crater, subsequent to an update on pending litigation with Clovelly Oil, which said that “an adverse court decision could result in a material adverse effect on our financial condition, future planned operations and/or cash flow.”. In addition, an amended credit deal greatly raises the magnitude of MPO’s revolving credit facility from $300 million to $500 million.
Investing Insights: Gold and Silver Keep Shining After Weak Data.
Cobalt International Energy (NYSE:CIE) shares fall, in reaction to the firm’s disappointing report on its drilling operations in the Gulf of Mexico and West Africa, which shows that its well on Canyon Block 814 in the Gulf turned up no commercial hydrocarbons. Procedures are already ongoing to plug and abandon the wellbore.
Chesapeake’s (NYSE:CHK) famous Aubrey McClendon might be losing his title of chairman, but he has Plans, according to Reuters. It’s now reported that the Board has modified its bylaws, to allow the CEO (McClendon), to retain the powers he enjoyed as Chairman. Further, both McClendon and the so far unnamed chairman will be allowed to call special meetings of shareholders and the board. Perhaps separately, CHK shares are downgraded at Sanford Bernstein to Market Perform, with the reason given that low natural gas prices will continue to impact shares and that second quarter earnings are viewed as “potentially a headwind to the stock”. The upside (for CHK’s peers, that is) is that the analyst finds value in EOG Resources (NYSE:EOG), Noble Energy (NYSE:NBL) and Apache (NYSE:APA).
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