Chesapeake Energy's (NYSE:CHK) Credit Rating Could be Boosted with New Strategy

Chesapeake Energy's (NYSE:CHK) credit rating has a good chance of getting a boost, as well as the valuation of the company, based on the new strategic financial plan of the company.

Barclays says, "We believe successful execution of CHK's new strategic and financial plan could positively impact the company's credit ratings and share valuation...We believe CHK's stock is attractively valued. We estimate shares currently trade at $1.55/Mcfe of YE10 proved reserves and -$8,300 Mcfe/d of FY11 production, after adjusting for the company's stake in CHKM and other PP&E. Under the company's 25/25 plan, we estimate the resulting outcome implies current values of $1.16/Mcfe of YE12 proved reserves and -$6,600/Mcfe/d of FY12 production."

Barclays reiterates an "Overweight" on Chesapeake Energy, which was trading at $27.93, up $0.59, or 2.16 percent, as of 2:15 PM EST. Barclays raised their price target on Chesapeake from $33 to $40.