For Immediate Release

Chicago, IL – November 16, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: JC Penney Company Inc. (JCP), Toyota (TM), Honda (HMC), EnCana (ECA) and Chesapeake (CHK).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

JC Penney Beats on Low Earnings

JC Penney Company Inc. (JCP), a leading retailer of apparel and footwear, accessories, fashion jewelry, beauty products and home furnishings, recently reported third-quarter 2009 results.

The quarterly earnings of 11 cents a share tumbled 80% from 55 cents posted in the prior-year quarter,

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In September, the trade deficit expanded to $36.5 billion -- an increase of $5.7 billion or 18.5% over August. This was a much bigger increase than was expected, as consensus expectations were for a deficit of $31.8 billion. Since the trade deficit is a direct input into the GDP calculations, look for the next iteration of the third quarter GDP numbers to be revised down from the original read of 3.5% growth. The reason for the growth in the trade deficit is also a bit of a silver lining. It happened because imports rose by $9.3 billion to $168.4 billion, while exports rose by $3.7 billion. The increase in both imports and exports indicates that world trade -- which is very important to global growth -- is on the mend. A 5.8% monthly increase is unusual, but is probably a reflection of higher overall demand in the ...

Chesapeake Energy Corporation (CHK) reported third quarter results of 70 cents per share, compared to the Zacks Consensus Estimate of 66 cents and year-earlier quarter earnings of 87 cents. Before adjusting one-time items, earnings per share were 30 cents. Despite the increased production volumes and lower production expenses, earnings were down due primarily to weak natural gas prices. Chesapeake’s average daily production for the quarter increased 7% year-over-year and 1% sequentially to 2.48 billion cubic feet equivalent (Bcfe), of which natural gas was 92%. Taking into account the company’s production curtailments, Chesapeake’s year-over-year and sequential production growth rates were 14% and 2%, respectively. The company is guiding towards full-year production growth of approximately 5-6% in 2009, 8-10% in 2010 and 12-14% in 2011. Average realizations for the quarter were $6.04 per thousand cubic feet (Mcf) for natural gas, compared to $5.56 per Mcf in the previous ...

Chesapeake Energy Corporation (CHK) has modestly raised its 2009 and 2010 production outlook and introduced its 2011 production guidance. The company also expects to spend $3.15 billion to $3.35 billion on drilling this year, up from its August forecast of $3 billion to $3.2 billion.  The company is expecting production of 12 million barrels of oil (MMbbl), 815–825 billion cubic feet (Bcf) of natural gas and total production of 885–895 billion cubic feet equivalent (Bcfe) during 2009.  For 2010, Chesapeake expects oil production to be 12.5 MMbbl, natural gas generation of 882–902 Bcf and total output to be 957–977 Bcfe. The company has provided its initial projections for 2011. It expects 13 MMbbl of oil, 1,007–1,027 Bcf of natural gas and 1,085–1,105 Bcfe of total production.  For 2009, the company expects year over year production growth to be in the range of 5%–6% (up from ...

For Immediate Release

Chicago, IL – August 24, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: XTO Energy (XTO), Chesapeake (CHK), EOG Resources (EOG), Nabors (NBR) and BJ Services (BJS).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Friday’s Analyst Blog:

Natural Gas Continues to Build

Continued strong domestic production (from a number of unconventional natural gas fields) and recessionary consumption (due to the economic downturn), particularly in the industrial sector, are at the core of the commodity's current woes. The supply picture is expected to reverse in the coming months

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  Yesterday, in its weekly report, the Energy Information Administration (EIA) said that natural gas inventories for the latest week came towards the lower end of expectations. Stockpiles held in underground storage in the lower 48 states rose by 52 billion cubic feet (Bcf) to about 3.20 trillion cubic feet (Tcf) for the week ended August 14. The data also showed that inventory levels were 19% above the five-year average of about 2.69 Tcf, and 21% above last year's storage level of about 2.64 Tcf (as clear from the following EIA chart).     The build was smaller than last year's 82 Bcf build and the five-year-average injection of 56 Bcf. However, the relentless increase in gas storage levels continue to add to the long list of issues weighing on the commodity. Natural gas prices rallied earlier last year, reaching over $13 per million ...

I was just reading the a href="http://seekingalpha.com/article/153691-chesapeake-energy-corporation-q2-2009-earnings-call-transcript?source=trans_sb_companiesamp;page=1"Chesapeake conference call /aand found this interesting quote from CEO Aubrey McClendon about gas prices:br /br /blockquoteYes, 675. So I would expect let's say, let's call it around 900 than with another 200 working on oil projects and I think you will see gas prices in the $6, $7, $8 range. There is a lot I like about 2010. I think it is all setting up right now and there is going to be a lot of kind of wailing and gnashing of teeth here on the next 60 days as we get full on storage but after that you got an improving economy. You’ve got oil at $12 per Mcf gas equivalency. You’ve got decline curves starting to kick in pretty aggressively. You’ve got every Eamp;P company that I have watched pretty scared about gas prices so, and you got a net expected ...

Chesapeake Energy Corp. (CHK) reported second-quarter earnings of $0.62 per share, compared with the Zacks Consensus Estimate of $0.50 and a year-ago quarter profit of $0.90 per share. The year-over-year fall was due to weak natural gas prices, partially offset by lower production costs.

Production

Chesapeake’s average daily production for the quarter increased 5% year over year and 4% sequentially to 2.45 billion cubic feet equivalent (Bcfe), of which natural gas was 92%.

Taking into account the company’s voluntary production curtailments due to low natural gas prices (averaging about 74 million cubic feet equivalent per day – MMcfe/d), three 2008 volumetric production payment sales (averaging approximately 139 MMcfe/d) and estimated impact from the sale of its Woodford Shale and Fayetteville Shale properties (averaging roughly 81 MMcfe/d), Chesapeake’s year-over-year and sequential production growth rates were 16% and 4%, respectively.

Realizations

Average realizations for the quarter were $5.56 per thousand

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Today’s guest is David Galland, the managing director of Casey Research. David’s going to give us a look through the trained eyes of the Casey Researchers at the energy sector, more specifically, natural gas. So take a look and see why David thinks cheap doesn’t always mean buy. As always, be sure to leave us a comment on your energy strategies.

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At the height of its late 2005 rally, natural gas in the U.S. was selling for just over $16/MMBtu, 350% higher than today’s price of $3.56. The oil/gas ratio, now over 18, is an all-time high… suggesting that natural gas is dirt cheap. So, it’s a buy, right?

In a phrase, not exactly.

According to a recent report by Natural Gas Intelligence, U.S. natural gas available for production “has jumped 58% in the past four years, driven by improved drilling techniques and the discovery

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At the height of its late 2005 rally, natural gas in the U.S. was selling for just over $16/MMBtu, 350% higher than today’s price of $3.56. The oil/gas ratio, now over 18, is an all-time high… suggesting that natural gas is dirt cheap. So, it’s a buy, right?

In a phrase, not exactly.

According to a recent report by Natural Gas Intelligence, U.S. natural gas available for production “has jumped 58% in the past four years, driven by improved drilling techniques and the discovery of huge shale fields in Texas, Louisiana, Arkansas and Pennsylvania, according to a report issued Thursday by the nonprofit Potential Gas Committee (PGC).”

According to the report, the increase in gas discoveries and production improvements means that North America shouldn’t have to be concerned about gas supplies for up to 100 years!

Dr. Marc Bustin provided an overview of the situation in the May edition of Casey Energy Opportunities.

In the ...