Tuesday, January 12, 2010

Natural Gas Bashers and Short Sellers Missing the Point and Fundamental Shift in U.S. Energy

Jan 12, 2010 09:24 AM

| about stocks: CHK, DVN, APC, EOG, XTO, APA, XOM, MRO, CVX, OXY

For public interest, senior Energy industry executive Karl W. Miller issued the following statement, through his advisors, regarding the continued onslaught of improper media reports, bashing and short selling of CHK.

It seems every industry has its "whipping boy" which is usually the most successful and progressive company in its respective sector. In the financial services sector, Goldman Sachs (GS) is the market's whipping boy. In Natural Gas, it is Chesapeake Energy (CHK). Both lead their industry, are progressive, and way ahead of the market curve. As a matter of fact, Goldman Sachs just raised its price target on CHK to $33/share.

That being said, no credible analyst would publish an article stating that Goldman Sachs (in its current form) investors are at risk of permanent capital loss. Nor would any credible energy analyst publish an article stating that CHK the#2 natural gas producer in the U.S. and one with four (4) Fortune 500 Joint Venture partners in its production fields is at risk of"permanent capital loss", as recently published in the media.

In Mr. Miller's professional opinion, the worst case scenario for CHK is that its proved and unproved and producing reserves are sold at a premium to current market prices to one of the Joint Venture Partners or a third party. Mr. Miller suggests the investing public read the attached article for education and edification.


If any investor truly felt risk of permanent loss was true, then prudent risk management would dictate that they sell their shares. In Mr. Miller's opinion, CHK remains undervalued on a reserve basis and has a solid institutional shareholder base.

Natural Gas is a tremendous U.S. domestic industry and back in the mainstream.Core commodities have staying power, and Natural Gas has been revived and a very big way, as Mr. Miller has previously opined.

Mr. Miller is a proponent of Invest in American energy resources, and CHK is a tremendous example of an American energy company success story which will only get better. There are others of course, DVN, APC, APA are other great examples of American energy success stories.

Disclosure: Long Energy Companies

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