Active Stocks in Focus: Autodesk, Inc. (NASDAQ:ADSK), Chesapeake Energy Corporation (NYSE:CHK)


Autodesk, Inc. (NASDAQ:ADSK), observed a 3.17% gain while ending its last trade, closed at $46.81.


Autodesk, Inc. operates as a design software and services company worldwide. The company’s Architecture, Engineering and Construction segment offers Autodesk Building Design Suites to manage various phases of design and construction; Autodesk Revit products that provide model-based design and documentation systems; Autodesk Infrastructure Design Suites; AutoCAD Civil 3D products that offer a surveying, design, analysis, and documentation solution; and AutoCAD Map 3D software, which offers direct access to data needed for infrastructure planning, design, and administration.

Autodesk declared that after July 31, 2016, new commercial licenses of most Autodesk Design & Creation Suites and individual products will be available by subscription only. When this takes effect, the company will provide new, simplified subscription options so customers can access multiple products and share licenses as they do recently — while gaining the simplicity, accessibility, and flexibility of subscription.

Subscription offers a simplified customer experience, lower upfront cost and the ability to pay-as-you-go for Autodesk products and cloud services with multi-year, annual, quarterly or monthly subscription terms. As a result, companies can adjust more nimbly and with less cost to shifting business environments.

Earlier this year, Autodesk communicated that it will stop selling perpetual licenses of most individual products after January 31, 2016, with new licenses for these products available as subscriptions. Transitioning the remaining majority of Autodesk’s product portfolio — counting Autodesk Design & Creation Suites — to an entirely subscription-based offering represents the next step in this shift.

On Tuesday, September 8th, 2015: Shares of Chesapeake Energy Corporation (NYSE:CHK), observed a gain of 5.50% while closing at $7.67.

The name Chesapeake Energy Corporation needs no introduction when it comes to producing oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the United States. It holds interests in natural gas resource plays, counting the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas.

Chesapeake Energy Corp., declared it has finalized new gas gathering agreements with the Williams Companies (WMB) in its Haynesville Shale operating area located in northwest Louisiana and its dry gas Utica Shale operating area located in eastern Ohio. Key attributes comprise:

Noteworthy improvement in per unit gathering rates established in two major growth assets starting in 2016, leading to improved volume growth

Combination of gathering system agreements allows Chesapeake to satisfy a minimum volume commitment (MVC) obligations in Haynesville Shale, increasing realized pricing per mcf of gas

Aligned planned interests improve drilling economics, operational efficiency and midstream asset utilization

Chesapeake will move to a fixed-fee agreement in the Haynesville Shale startning in January 2016. Gas gathering fees in the Haynesville will be reduced on a unit basis, and the existing minimum volume obligations are predictable to be met with the consolidation of two gathering systems and a projected improvement in Haynesville area volumes. Inclusive of formerly predictable MVC shortfall payments, the company’s gas production is predictable to see improved gathering rates of about $0.20 per mcf in 2016 and 2017 and about $0.30 per mcf in 2018 and beyond. As part of the transaction, and consistent with Chesapeake’s current operating plans, the company committed to turn 140 equivalent wells online before the end of 2017. This commitment is projected to result in noteworthy production growth in the Haynesville Shale asset over the next two years, thus also increasing Williams’ revenue from the area.

Chesapeake will also move to a fixed-fee agreement in the dry gas Utica Shale, starting in January 2016, and is predictable to see an estimated gathering rate reduction of about $0.25 per mmbtu. As part of the transaction, Chesapeake is dedicating an additional 50,000 net acres to Williams and will be subject to a new minimum volume commitment of 250 mmbtu per day starting in mid-2017. The company anticipates meeting this commitment with about one rig per year.

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About the Author

Lee Banks
Lee is an editorial intern at JBH News, covering visual features. He recently graduated from the Massachusetts College of Art and Design.