Total Cuts Natural Gas Investments, Chesapeake Shares Hit

Energy

Published: January 10, 2013 11:27 am

Last Updated: April 28, 2020 8:38 am

In January 2010, France’s supermajor oil & gas company Total SA (NYSE: TOT) paid about $2.25 billion for a 25% stake in the Barnett shale leases owned by Chesapeake Energy Corp. (NYSE: CHK). The French company liked the deal so much that two years later it paid Chesapeake $2.3 billion for a similar-sized stake in the U.S. company’s Utica shale operations.

In 2010, natural gas prices were around $6 per million BTUs, compared with around $3.20 today. And that has led Total’s CEO to declare today that the French firm will make no new investments in the dry gas shale plays. Saying the investment “does not work,” website Upstream Online cited CEO Christophe de Margerie:

I see no point in investing … where there is no profitability. The fields are still there, the permits are still valid and production will restart when gas prices return to above cost levels.

Shares of Chesapeake are down more than 3.6% on the news, at $16.45 in a 52-week range of $13.32 to $26.09.

The Average American Has No Idea How Much Money You Can Make Today ^(Sponsor)

The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.

But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.

¹https://www.fdic.gov/national-rates-and-rate-caps