I am really no fan of Chesapeake, but I can certainly understand why some may predict that Chesapeake is a prime buyout candidate. Their growth model has always been to outspend the competition and run prices up so high that hardly anyone can compete. The problem with this business model is that it tends to ramp up your debt load fairly heavily. Chesapeake has outrun their over leveraged position by riding the upward tide of commodities for the last decade or so. With weakening natural gas prices, they might be a little tight on some note payments (so say some in the Oil and Gas accounting world).
To predict that CHK would be bought entirely is a little much I think. I think their preference is to sell off assets in a bid to stay sovereign. There is just to much ego in the mix at CHK.
My prediction would be further sales of participating interests nationwide. This will leave them more liquid, and alleviate geographic risk. I would welcome the ousting of CHK propaganda from every corner of Fort Worth whole heartedly.
