Wednesday, February 16, 2011

We maintain a Sell Opinion on Chesapeake Energy (CHK) and Devon Energy (DVN); Oil Range Bound $80-90/bbl

We have heard this before from T. Boone Pickens. To confirm, We maintain a Sell Opinion on Chesapeake Energy (CHK) and Devon Energy (DVN). The domestic US Natural Gas producers are dead capital and have absolutely no pricing power.

We target North American Oil staying in a tight range of $80-90/bbl due to secure supply from Canada. We do not place any premium on the "hype" Shale Oil at this time.Pickens Sees $120 Oil, Shuffles Energy Bets - Yahoo! Finance

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