#3 - Chaparral Energy (NYSE:CHAP)
Sector: Energy
Chaparral Energy (NYSE:CHAP) stock is down 80% in 2020. Most of the blame for the country’s current predicament can be placed squarely on oil prices at near record lows. However, the company’s debt problems are not unique to this time and place. During the last oil shock, the company entered and successfully exited a Chapter 11 bankruptcy.
In late March, the company announced it has hired financial advisors to help it improve its balance sheet. The company has $421 million in outstanding debt. It has 8.75% bonds due in July 2023 that are currently trading at 25 cents on the dollar. The company says no restructuring move is imminent.
In its most recent earnings report in March, CHAP beat analysts’ expectations for both revenue and earnings. But that most certainly did not factor in the current state of the oil market. Despite the earnings beat, Roth Capital downgraded the stock from Buy to Neutral.
The bottom line for Chaparral is that it needs to see oil prices recover to stave off what appears to be an inevitable move into another bankruptcy. However, despite the United States government direct intervention with Saudi Arabia, the price of oil is still reaching for a bottom.
About Chaparral Energy
Chaparral Energy, Inc engages in the acquisition, exploration, development, production, and operation of onshore oil and natural gas properties primarily in Oklahoma, the United States. The company sells crude oil, natural gas, and natural gas liquids primarily to refineries and gas processing plant.
Read More - Current Price
- $0.04
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
