S&P 500
7,226.20
+0.01%
Dow Jones
49,494.60
-0.62%
Nasdaq 100
27,685.40
+0.66%
Russell 2000
2,804.78
-0.02%
FTSE 100
10,364.50
0.00%
Nikkei 225
59,260.50
-0.78%

Energy

Total Cuts Natural Gas Investments, Chesapeake Shares Hit

Photo of Paul Ausick
By Paul Ausick Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Drilling rig
Thinkstock
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.

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Dave Ramsey to Wife Who Caught Husband Lying About Debt 4 Times: '41 Years Down the Toilet'
Joel South |

Dave Ramsey to Wife Who Caught Husband Lying About Debt 4 Times: '41 Years Down the Toilet'
Why Your 401(k) Could Trigger a Tax Bomb in Retirement (And What to Do Now)
Jeremy Phillips |

Why Your 401(k) Could Trigger a Tax Bomb in Retirement (And What to Do Now)

Continue Reading

Douglas A. McIntyre |

Title: Chesapeake Sells More Assets to Chinese (CHK, CEO, BP, SLB, HAL, BHI)

Ever since 2005, when its offer to buy Unocal was withdrawn following cries of political rage, Cnooc Ltd. (NYSE: CEO)…
France’s Total Takes Over Barnett Shale Following Chesapeake Exit
Paul Ausick |

France’s Total Takes Over Barnett Shale Following Chesapeake Exit

Total announced Friday that it has exercised its preemption right to acquire all of the 75% interests it jointly owned…
Paul Ausick |

Chesapeake Sells Utica Shale Stake to Total (CHK, TOT, BP, PXP, SD, CRZO)

In yet another of the deals that shakes up the landscape of US shale gas production, Chesapeake Energy Corp. (NYSE:…
Jon C. Ogg |

Chesapeake Leaves the Fayetteville Play (CHK, BHP, BP, PXP, BCS, XOM, HK, POT)

It’s hardly news any more when Chesapeake Energy Corp. (NYSE: CHK) sells off more assets. This time is a little…
Paul Ausick |

Chesapeake Looking to China Buyer (CHK, SNP, CEO, DVN)

An asset sale to a Chinese buyer would not be a first for Chesapeake Energy Co. (NYSE: CHK), but if…
Douglas A. McIntyre |

Foreign Investors Buy Into Shale Gas Play

Earlier this year Pioneer Natural Resources Co. (NYSE:PXD) said that it was seeking bids from potential partners to develop its…
Paul Ausick |

Chesapeake Beats Estimates, Outlines More Asset Sales (CHK, XOM, APC, DVN, BHP, BP)

Chesapeake Energy Corp. (NYSE: CHK) opened about 2% higher this morning following its third-quarter earnings release after markets closed yesterday.…
Douglas A. McIntyre |

What If Chesapeake Production Cuts Work? (CHK, PXP, BP)

Chesapeake Energy Corporation (NYSE: CHK) is tired of not having profitable results from a key operation.  The largest natural gas…
Paul Ausick |

Utica Shale’s Hopes Dimmed at Chesapeake

courtesy Chesapeake Energy Corp.Aubrey McClendon, co-founder and CEO of Chesapeake Energy Corp. (NYSE: CHK) told an investor conference yesterday that…

Top Gaining Stocks

Cboe Global Markets
CBOE • Vol: 1,568,143
New Pluto Global
PSKY • Vol: 12,285,993
Seagate Technology
STX • Vol: 7,378,346
Oracle
ORCL • Vol: 26,317,675
Datadog
DDOG • Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ • Vol: 4,367,433
Clorox
CLX • Vol: 13,260,523
Stryker
SYK • Vol: 4,519,455
Mohawk Industries
MHK • Vol: 1,859,865
Amgen
AMGN • Vol: 3,818,618