Chesapeake Energy’s stock rockets as oil prices surge

Shares of Chesapeake Energy Corp. CHK, +76.51% rocketed 50.3% in active afternoon trading Friday, boosted by a surge in crude oil prices ahead of a weekend meeting of major oil producers.

Market Watch reported that volume swelled to 5.5 million shares, compared with the full-day average of about 2.5 million shares. The oil and gas company’s stock, has now more than doubled (up 142.4%) since it closed at a split-adjusted record low of $8.71 on May 14. However, the company continues to be on the bankruptcy watch list of analysts.

The debt-laden company had enacted a 1-for-200 reverse stock split on April 15. Crude oil futures CL00, -1.46% rallied 5.8% Friday, and have shot up 41.9% since May 14. But year to date, Chesapeake’s stock was still down 87.2%, while crude oil futures have lost 35.2% and the S&P 500 SPX, +2.62% has slipped 1.0%.

Source: Market Watch