March 9, 2013
Natural gas exploration and production companies continue to face considerable headwinds because of low natural gas prices. To stay solvent, natural gas producers such as Chesapeake Energy (NYSE: CHK ) and Devon Energy (NYSE: DVN ) were forced to move into liquids production in addition to creating joint ventures or selling assets to foreign national oil companies.
Oil and gas producers are now looking to the federal government to allow more LNG exportation permits so companies can sell natural gas to the highest bidder. Uncle Sam continues to drag its feet on making a decision for or against LNG exportation, forcing some natural gas producers to sell valuable assets and technology to foreign government-owned oil and gas companies. With record worldwide price disparities, the United States could profit handsomely from selling low-cost natural gas into high-end markets, but time is of the essence.
Energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While these issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.