Nitrogen, phosphorous, and potassium are the three most important crop nutrients. Their global consumption could reach 186.0 million tons in 2015–2016.
Fertilizers are commonly labeled using a convention that includes the amount of NPK available in the mix.
There’s a constant need to bring up the fertility levels necessary to grow crops, and that need is fulfilled by fertilizers.
According to the IFA, fertilizer consumption in the 2010–2011 season was 173.0 million tons. It was close to zero about 90 years ago.
Fertilizers play an important role in the development of crops by providing the required nutrients. They may also improve the quality of crops.
Increasing crop yield on available farmland could be the best solution to the problem of increasing crop production.
Most of the increase in food requirement will take place in developing countries because the standard of living is expected to improve in those countries.
In this series, we’ll be taking a close look at the agricultural fertilizer industry and why it serves one of the most important functions in the agricultural sector.
After its Barnett Shale exit, Chesapeake Energy (CHK) expected its operating income to rise ~$200 million–$300 million per year from 2016 to 2019.
CHK has a production mix of 75% liquids in the Eagle Ford, 56% of which is oil.
Chesapeake Energy (CHK) owns 307,000 acres in the Powder River Basin and has 2.7 billion barrels of oil equivalent gross recoverable resource potential.
CHK projects its exit-to-exit total production to rise ~7% in 4Q17. This rise in oil production is expected to be ~10% higher than in 4Q16.
CHK has 11.3 billion barrels of oil equivalent in total net recoverable resources and 5,600 potential drilling locations, with a rate of return of 40%.
According to CHK’s December 2016 presentations, break-even prices in the Marcellus and Utica Shales are $2.00 per MMBtu and $2.15 per MMBtu, respectively.
At the end of 3Q16, CHK had a debt principal balance of $8.7 billion, which lower than its $9.7 billion at the end of 2015.
On August 10, 2016, CHK announced intentions to exit the Barnett Shale. This deal helped it eliminate ~$1.9 billion in commitments to Williams Partners.
Chesapeake’s 2016 production growth guidance range was 0%–3%, and it expects production to be 617 Mboepd–637 Mboepd.
Chesapeake Energy’s December presentation noted that it had hedged 71% of natural gas volumes and 68% of oil volumes for 2017. It’s also hedged for 2018.
CHK’s 3Q16 EPS was $0.09 in 3Q16, as compared to -$0.05 in 3Q15 and $0.38 in 3Q14.
Chesapeake Energy’s (CHK) high target price stands at $11. Its low target price is $2.5, and its median target price is $7.75.