Shares of Crestwood Equity Partners L.P. (CEQP) dropped 1.7% toward an 8-month low in morning trading Monday, amid concerns over the energy midstream infrastructure company's exposure to Chesapeake Energy Corp. (CHK), which gave a "going concern" warning last week (link). Chesapeake is a customer of Crestwood in the Powder River Basin (PRB). The stock was headed for a fifth-straight loss, and has shed 14% during that stretch. Analyst Selman Akyol said the recent selloff in Crestwood shares have created an "attractive entry point" for investors, as Crestwood had already acknowledged that their 2020 outlook already assumed a lower rig count in the PRB by Chesapeake. While PRB producers have yet to finalize their drilling plans, Akyol believes "there is likely more upside to [Crestwood's] PRB forecast than downside." Crestwood shares have rallied 12.5% year to date, while Chesapeake's stock has plunged 58.4% and the S&P 500 has advanced 23.0%.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
11-11-19 1316ETCopyright (c) 2019 Dow Jones & Company, Inc.