Close Curtains For the Likes of Chesapeake Energy Corporation (CHK) and Continental Resources, Inc.(CLR)

Providers of cheap energy to fuel US economy like Chesapeake Energy Corporation (NYSE:CHK)  and Continental Resources, Inc. (NYSE:CLR) may have their best days behind them hence, it is time for energy investors to move on. . T Boone Pickens who is founder and chairman of the fund BP Capital discussed on Fox Business what independants Chesapeake Energy Corporation (NYSE:CHK)  and Continental Resources, Inc. (NYSE:CLR) have meant for US economy and how to play the energy markets in future.

Chesapeake Energy Corporation (NYSE:CHK)  and Continental Resources, Inc. (NYSE:CLR) have been part and parcel of the US shale revolution but their glory days might have been over due to falling gas prices. Perkins said that his fund was done with chasing profits from likes of Chesapeake Energy Corporation (NYSE:CHK)  and Continental Resources, Inc. (NYSE:CLR) and was now instead, investing in companies that are set to benefit from the low gas prices that shale revolution has ushered in.

“[…] E&P companies, exploration and production companies, the independents have carried the deal, the majors have been on the sidelines watching  but the independents have carried it. But, we played that game on the E&P stocks but we are kind of over now that the people going to, that we like to focus on are those that are using natural gas because gas is so cheap and you have so much of it […],” said Pickens.

Continental Resources, Inc.(NYSE:CLR) saw its all time high of $86 on 29th August and is currently trading at $67.7. Similarly,  Chesapeake Energy Corporation (NYSE:CHK) saw its high of $31 in June and is currently trading at $24.5. It seems that the shale gas producers might have run out of gas for their own companies but they have plenty of it for  the US economy.

Pickens who is a geologist himself said that he was very skeptical of the shale gas revolution 10 years ago but now he has been supporting the industry for a long time as the industry is a source of cheap energy in US. He explained that in lieu of high wages there is only one thing that can bring businesses back to US and that is cheap energy.

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