New York- Chesapeake Energy Corporation has rallied over 6% in the last month with the rally of natural gas stocks. This is puzzling given the decline in the value of natural gas. Natural gas has declined to $3.53 MMBtu which is the price of natural gas measured in Millions of British Thermal Units. Chesapeake stock rallied earlier in the week when they announced they had sold their Texas assets to China's CNOOC. The stock rallied more than 6% in the pre-market only to finish flattish. The stock rallied on the easing of investor concerns about Chesapeake's financial position however investors now face the worries of declining profitability as the price of natural gas plummets.
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