Energy News: Chesapeake Energy Corporation (CHK)’s Capital Allocation System, Exxon Mobil Corporation (XOM)’s Response Plan & More

Chesapeake cut to neutral by Susquehanna (MarketWatch)
Chesapeake Energy Corporation (NYSE:CHK) +0.08% was Wednesday cut to neutral from positive by Susquehanna, with the analysts saying much of the recent improvement is now priced into the share price. “While all the right rhetoric is in place and old-guard senior managers have recently been let go, gas markets are weak, CHK’s easiest divestitures are done, and CHK is only now implementing a new capital allocation system.

Rosneft And ExxonMobil Proceed With LNG Project Implementation (EurasiaReview)
Rosneft and Exxon Mobil Corporation (NYSE:XOM) continue to progress the LNG project proposed in the Russian Far East. The contractor selection process for design and engineering work has officially commenced. Capacity of the LNG project to be located on Sakhalin Island in the Russian Far East is expected to be 5 million tons per year, subject to further expansion. The liquefaction plant, the launch of which is scheduled for 2018, will receive natural gas from Rosneft’s reserves in the Far East and other Sakhalin gas reserves.

Exxon Mobil: Oversold, But Still Wobbly (InvestorPlace)
Oil exploration and production giant Exxon Mobil Corporation (NYSE:XOM) late last month bumped up against its long-time area of resistance around the $96 mark. What at the time might have looked like a stock with potential to pierce through resistance, however, once more established itself as the weaker of the two and proceeded to recede quite sharply over the past three weeks. Traders that kept in mind the longer-term view of the stock, on the chart below, will have noted that the stock’s relative higher high in July vs. the 2011 highs came on waning momentum as indicated by the relative strength index (RSI).

Chesapeake Energy Corp. Downgraded to Neutral at Susquehanna (CHK) (MideastTime)
Chesapeake Energy Corporation (NYSE:CHK) was downgraded by stock analysts at Susquehanna from a “positive” rating to a “neutral” rating in a report issued on Wednesday, TheFlyOnTheWall.com reports. They currently have a $26.00 target price on the stock. Susquehanna’s price target would indicate a potential upside of 2.93% from the company’s current price. The analysts noted that the move was a valuation call.