Chesapeake Granite Wash Trust (PK) (CHKR) News

11/19/2024 Scheduled Dividend 0.0267 — 11/19/2024 11/19/2024 11/29/2024

Chesapeake Granite Wash Trust declares $0.0098 dividend...woo hoo

U.S. Power and NatGas Prices Plummet to Below Zero - 5/7/24
U.S. spot power and natural gas prices plummeted into negative territory across Texas, California, and Arizona on Tuesday, signaling a surplus in production amidst subdued demand and ample hydropower reserves.

At the Waha hub, next-day gas prices plummeted to a three-week low of negative $2.72 per million British thermal units (mmBtu) on May 6. Next-day power prices at hubs in Arizona and Southern California plunged to one-week lows.
The dynamics driving negative prices suggest energy firms are grappling with excess power and gas production. As a result, producers find themselves in the precarious position of either reducing output, paying others to absorb surplus energy, or resorting to flaring.

Forecasts preceding this plunge had already hinted at potential downturns in gas prices at the Waha hub in West Texas. These predictions materialized as Kinder Morgan initiated seasonal maintenance on pipelines connecting the Permian to the Gulf Coast. Reductions in pipeline flows, coupled with ongoing maintenance activities, compounded the downward pressure on prices.

These developments come against the backdrop of typically subdued power and gas prices in the spring, fueled by mild weather and enhanced hydropower supplies.

As market participants grapple with these unprecedented developments, attention now turns to upcoming meetings of OPEC+ and the Federal Reserve. These pivotal events are expected to provide insights into global oil supply dynamics and interest rate trajectories, respectively, further shaping the trajectory of energy markets in the coming months.
Back in March, the oversupply in the U.S. natural gas market was thought to be easing, with operators expected to cut production in response to the February price slump as prices hit a three-decade low. Despite these multi-year low natural gas prices, domestic producers in the United States continued to be optimistic about the long-term prospects of gas as a fuel.
https://oilprice.com/Latest-Energy-News/World-News/US-Power-and-NatGas-Prices-Plummet-to-Below-Zero.html

MARCH 11, 2024
United States produces more crude oil than any country, ever
https://www.eia.gov/todayinenergy/detail.php?id=61545#:~:text=United%20States%20produces%20more%20crude,U.S.%20Energy%20Information%20Administration%20(EIA)

The U.S. is not only the world’s largest natural gas-producing country, it is also the largest exporter of natural gas (including liquefied natural gas). Nevertheless, the largest share of gas produced in the country is consumed domestically.
https://www.statista.com/statistics/264771/top-countries-based-on-natural-gas-production/#:~:text=The%20U.S.%20natural%20gas%20industry,the%20country%20is%20consumed%20domestically.

When it gets into the 50s I'll start adding for the Trump effect when he wins in November and energy will once again be done in America. Once elected I expect this to fly like a rocket back into dollars not cents.

Under a buck and still paying divis, what else do you need?

Sure would be nice if Ihub admin could change the venue to Pinks Current since it dropped off the NYSE

I did get some .3121 but only small partial fill

WOW, it hasn't been in the .30s in years UNTIL RIGHT NOW.

Something bad is coming, no doubt about it

No public information that I can see so it means insiders must be dumping as fast as they can - If they are dumping it certainly won't be good news once they are done and tell us what the hell happened.

Anyone have any idea as to why CHKR went down in last 5 days?
What’s going on?
Are they going out-of-business?
Are they reducing dividend?
Do they have any investor relations contact?

EGR… 25%

SG… 55%

$CHKR Earnings Growth 40%… Sales Growth 50%

CHKR is undervalued…

CHKR has a Sales Growth of 93.00% per year.

$1.36 stock paying a .0849 divi this quarter, how crazy good is that?

Own by the 18th and you will get divi payout on the 29th.

crazy good for a .80 cent stock..over 30% yearly!

Right on time, it's like clockwork and might I mention it has increased by about 2 cents from Nov divi.

woohoo!....-.0667 divi

Thank you for the information. I decided to wade in with 3000 shares.

Chesapeake Granite Wash Trust was a non-filing entity in Chesapeake's bankruptcy in June 2020, and CHKR has made two cash distributions since then. Tapstone Energy submitted a stalking horse bid of $85 million for all of Chesapeake's 700,000 acre mid-Continent holdings, which included the 40,000 acres in Washita County underlying the CHKR Trust and slightly over half of the CHKR units.

Tapstone, led by former CHK executive Steve Dixon, won the bid for $130.5 million and they completed the transaction in mid-December 2020. It should be noted that Tapstone also declared bankruptcy earlier in 2020, but had $300 million in fresh capital after they emerged in spring. Three years ago, they filed to go public (offering was cancelled), but the prospectus is still available on SEC.gov.

Chesapeake had a legacy position in the Granite Wash in Anadarko trend and the proceeds from the trust were used for a drilling program that ended in 2016. Units of the trust were issued for $19 back in 2011. Over time, by my calculations they have returned $12.91 in aggregate distributions. No bueno, but I feel that the remaining production may compensate CHKR holders who buy it today (the trust expires in 2031).

If distributions stay at the November 2020 level, CHKR is no bargain whatsoever. However, I feel that it's very likely that distributions will increase in 2021, reflecting not only rising commodity prices but the resumption of production from the wells that Chesapeake shut-in.

CHKR's production is a nice mix of dry & wet gas, as well as oil. CHKR is most exposed to natural gas liquids (NGLs = ethane, propane, butane, isobutane and natural gasoline). Due to impact of extreme commodity price pressures (COVID-19 dented demand, Saudi/Russia flooded market with supply) in early 2020, Chesapeake shut-in many wells.

At the low point in May 2020, the amount CHKR received for oil declined to $17.91 barrel and NGLs was $4.48. They were actually paying someone to cart away the natural gas! However, prices have about tripled since then to $45 - $50 / barrel for oil and $13 - $14 by my estimation for NGLs. And natural gas prices are higher too.

These are horizontal wells that are drilled fairly deep; they produce like gangbusters in the first year or two, but thereafter the decline is relatively shallow. In the 3rd quarter of 2020, volumes produced declined 30% - 40%. That is of course is partially attributable to natural declines, which by my estimation is 11%-12% / year.

However, in my opinion production declines are primarily attributable to Chesapeake shutting-in production in March / April of 2020. By my estimates, approximately 25 wells had not resumed production by October 2020. It could be that there are mechanical problems or additional investment that Tapstone needs to incur to bring the wells back on stream. That is a big wild card in my opinion, but it should begin to be resolved when CHKR reports its results in February.

Doing some research on the private market for royalty interests, a cheap acquisition would be 30-40 months production (30x their monthly royalty check). If the seller drives a hard bargain, you might pay up to 50x monthly production (or more if there are development possibilities).

Using current prices for the units ($0.26), CHKR is now trading for 650 months production (based on the November 2020 distribution), but around 26 months production (based on the May 2020 distribution). As you probably remember, distributions look back about three months (in other words, November 2020 represented June 1 - August 31st).

So the question in my mind is whether May 2020 or November 2020 is more representative of distributions going forward. I would be happy with one cent in the February announcement and 2 to 2.5 cents for the three announcements thereafter in 2021. (I am long CHKR units).

As a side note, I find it remarkable the shares in bankrupt companies, including Chesapeake, have ripped higher this year. Chesapeake Energy has $7 billion of debt that appears will not be repaid in bankruptcy, which by my observation looks to be winding up in February 2021. Because creditors ahead of the preferred and common shares in the capital stack will not be fully repaid, in my opinion the common shares (CHKAQ) and four versions of preferred stocks (CHKG/H/L/P) will be rendered worthless. Nevertheless, they have recently appreciated much more rapidly than CHKR.

Next divi should hit around Feb 8th +/- IF there is one.

I believe that is why it is going up.

I'm in it but lower than today. Divis have been trimmed but they have continued to pay qtrly.

Is anyone out there interested in this Stock?

Or anyone with new DD?

Still paying divi albeit at half a penny per share (.0053)

High of .54 today - last chance to catch the divi.

EX date is tomorrow the 19th

Record date the 20th

Paydate June 1

.0291

Run up to catch the .0291 divi payout June 1

Yikes...delisted to Pinks on Monday.

CHKR delisted from the NYSE to the OTC:

https://otce.finra.org/otce/dailyList?viewType=Additions

Added some more today!

Added today...

In on this today, now just sit and wait. I’m sure production on these wells are going down naturally, but w/ events going on price will bring this up. Will trade at right price and keep half for div.

This seems like a no brainer to me. Totally in on this next week. Will trade half of what I pick up and keep half just for the dividend, it’s not much but has potential to add up order time.

This could get interesting with oil rising...

4 Penny Stocks To Buy For Under $1 Right Now

$BNGO $RTTR $HTBX $CHKR

https://www.transparenttraders.me/2019/11/4-penny-stocks-to-buy-for-under-1-right.html

.55 cents now another .45 cents needed to be in listing requirements, NYSE usually gives companies a year to comply. The dividend is still being paid so there are upside possibilities

I just bought a whole 14 shares the other week because I had a few bucks sitting in my brokerage account. I feel for you, as I've been in that boat before. As for my stake in this, I just freed some cash up and was thinking of evening my investment out to 100 shares, and just letting the dividends reinvest. I don't have much to lose on it, and it might be interesting to see where it winds up in the years to come.

Anyone buying this in the past including recently are losing their shirt and pants with this investment. The lower this goes your principal is almost gone, plus your dividends become worthless! My investment is now down 65%!

Hey maverick one, are you still buying? Down to 85 cents now. Been dropping since 2012! should have seen this coming, since I bought at $2.85 in 2016. Might as well sell since this POS has been dropping now for 7 years! I am LOSING MONEY HERE!

Still acquiring - high returns with divs - upside with low entry PPS.

Un Buon Invistimento

Time to buy more.

Hello, Badfoot, I see you haven't posted in quite some time. This dog has been a loser since 2012 and has spent 6 years dropping. No matter what price you get in and how high the dividend is, we're all losers! I'm also a loser here buying in at a price busting share price of $8.25 and my principle is down very much and the dividends I get don't begin to cover what I've lost here. I see I am going to dump this dog for a whopping loss. As expected, I am Losing Money Here!

Yes, I hope i'm not too late for an answer! Whatever you do, DON'T buy any of these shares. I originally bought in at the $8+ plus area and I'm fuming! My shares are down 80% and I've lost my principle, plus most of the dividends due to this dog dropping continually! Why I stayed in is beyond me. I might as well stay in for now to catch the dividend coming up, then it's outta here for me.

I am looking to start a position at or around the current price. Does anyone have any input on the fundamentals?

On watch, will post when I take a position

AUSTIN, Texas, Aug. 4, 2017 /PRNewswire/ -- Chesapeake Granite Wash Trust (CHKR) (the "Trust") today announced that its common unit distribution for the quarter ended June 30, 2017 (which primarily relates to production attributable to the Trust's royalty interests from March 1, 2017 through May 31, 2017) will be $0.0949 per common unit. The distribution will be paid on August 31, 2017 to common unitholders of record at the close of business on August 21, 2017, except with respect to holders of common units issued on June 30, 2017 upon conversion of the Trust's subordinated units.

hang in there and maybe you can short play while hoping you can short your money back or it goes to $8.00

I'm not doing good with my entry point at $8.00 back in 2013! Hope this dog gets back there. Not a very active board here. I'm Losing money here!

I'm not convinced that the bottom is in this one yet. It would be more compelling to me if the chart was making lower lows and the macd higher lows (this is known as macd bullish divergence and is the start of many trend reversals).

To me the weekly chart looks like it is making a sideways triangle (or symmetrical triangle) that may likely breakdown soon. The macd is below 0, so the chart is downtrending currently, when the two macd lines cross downwards the next leg down begins.

While I don't recommend it one could wait to see if breaks upwards from inside the triangle than down, buy and then use the lower side of the triangle as an initial stop. This would be a counter trend trade and they can be challenging for even advanced traders. Best to go with the flow if the chart is not indicating bullish divergence and in this case it isn't...the trend's down...




key concepts
symmetrical triangle
http://www.google.com/search?q=how+to+trade+the+sideways+triangle+symmetrical+triangle&ie=utf-8&oe=utf-8

macd bullish divergence reversal
http://www.google.com/search?q=macd+bullish+divergence+reversal&ie=utf-8&oe=utf-8

macd crossover
http://www.google.com/search?q=macd+crossover&ie=utf-8&oe=utf-8