Scott Cooper World Reports Chesapeake Granite Wash Trust (CHKR) reports
Production for the latest reported quarter dropped to 311 MBOE, down (10.9%) compared to the previous quarter and down (34 percent) year over year.
CHKR is trading at 1.75 times the newest PV-10, an estimated rate of return of 2.30% given the futures market expectation for energy price levels over the next five decades.
This report provides a detailed basic analysis highlighting why the shares are over-priced.
After reaching an all-time low of $1.56 in mid-January 2016, stocks of Chesapeake Granite Wash Trust (NYSE:CHKR) traded up to as large as $3.64 per share on April 28 th. In the week leading up to the May 6 th distribution statement of $0.0403 per share the shares plummeted in value and continued to decline immediately after the announcement. For the period April 28 th through the trading day on May 10 th the shares have declined 40% to $2.18 per share.
Is the Trust now fairly valued or is the current drop overdone?
This report provides a fundamental analysis of CHKR and assesses the Trust fair market value given the market has realized how over-priced the CHKR shares were leading up to the supply announcement.
Distributions gap down in May 2016
Chesapeake Granite Wash Trust announced quarterly results on May 6th, 2016 and announced a distribution of $0.0403 per share. The distribution amount was 75% lower compared to the preceding quarter.