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CHK’s Stock Reaction after Its Haynesville Divestiture Announcement

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Dec. 22 2016, Updated 7:37 a.m. ET

CHK’s stock reaction

Chesapeake Energy’s (CHK) stock closed $0.02 lower on December 20, 2016, at $7.29, but following its after-market announcement of a second Haynesville Shale divestiture, the stock rose $0.02 again to $7.31.

In the two weeks since December 6, 2016, CHK’s stock has fallen ~3.6%. During this period, CHK stock tracked natural gas prices (UNG), which fell 10% during the same period. However, the news of the second Haynesville divesture will likely give the stock the boost it needs.

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Several natural gas-weighted companies have seen their stock prices fall during this two-week period, thanks to the fall in natural gas prices. EQT Corporation (EQT), Rice Energy (RICE), and Cabot Oil and Gas (COG) have seen their stocks fall 9.3%, 15%, and 7%, respectively, in the two weeks since December 6.

Toward the end of the above period, Chesapeake Energy continued to underperform the broader energy industry, as represented by the Energy Select Sector SPDR ETF (XLE), in addition to the broader market, as represented by the S&P 500 SPDR ETF (SPY). But it was seeing higher returns than natural gas by the end of the period.

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