Why Chesapeake Energy’s Stock Is So Volatile Today
Shares of Chesapeake Energy (NYSE: CHK) bounced around quite a bit today. The oil and gas driller's stock initially rallied more than 6% after it unveiled its second-quarter results. However, shares gave back those gains and then some as the market further digested that report. By 2:00 p.m. EDT, the stock was down more than 10%.
On the one hand, Chesapeake Energy posted some impressive numbers. The company's oil production hit a record level during the quarter, rising 10% year over year after adjusting for asset sales. Meanwhile, the company noted that it's on track to deliver $250 million to $280 million in cost savings this year as a result of its acquisition of WildHorse Resources Development. That's at the high end of its $200 million-to-$280 million target range. Finally, the company continued to improve its financial profile by refinancing more debt during the quarter.
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