Shares of Chesapeake Energy Corp.
took an 7.2% dive in active morning trading Monday, and hit a 20-year low in intraday trading, as crude oil prices pulled back from Friday’s 8-week closing high. Trading volume of 33.8 million shares made the oil and natural gas company’s stock the most actively traded on major U.S. exchanges. The stock hit an intraday low of 63.00 cents, which is the lowest price seen during regular-session hours since February 1999, before paring some losses. The stock was currently on track to close at the lowest price since May 1994. Continuous crude oil prices fell 1%, weighed by some general weakness in risk assets, including equities. Chesapeake’s stock and crude oil futures
have a correlation coefficient of 0.42 year to date, where as a reading of 1.00 would indicate a perfect match. Chesapeake’s stock has plummeted 69.0% year to date, while the SPDR Energy Select Sector ETF
has gained 3.5%, crude futures have run up 26.1% and the S&P 500
has advanced 24.2%.
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