Chesapeake Energy Bonds, Short Term, High Yield, Fixed Income Investment, Yielding 9.5% YTM

This week, Durig looks at an energy company that is making the transition from its historical focus on natural gas to be more focused on oil production. Chesapeake Energy (NYSE:CHK) has been making strides this year to transition towards a more oil focused production portfolio. Chesapeake has already increased oil in its production portfolio from 17% in 2018, to 24% as of the end of the second quarter.  The company estimates it will exit 2019 with oil representing 26% of its production. Oil is a higher margin product, so Chesapeake is already seeing the fruit of its decision (see bullet points above).

Want More Income? Find It in Short Term Bond Portfolio

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(Above: FX2 Benchmark Performance, 8-27-19)

CSI Compressco Bonds, Short Term, High Yield, Fixed Income Investment, Yielding 10.25% YTM

This week, Durig Capital takes a look at a company that provides compression services and equipment for the oil and gas industry. With the demand increasing for takeaway capacity from oil and gas fields around the country, CSI Compressco’s services become even more valuable and essential. The company had a fantastic second quarter, with record setting utilization, increased revenues and adjusted EBITDA.

 

  • Second quarter overall utilization came in at a record setting 89.1%.

  • Revenues increased by 36% over second quarter 2018.

  • Adjusted EBITDA increased 22% over first quarter and 41% year-over-year.

  • Outstanding interest coverage of 2.2x.

 

DHX Media, Convertible Bonds Mature September 2024 – Pick Up Over 12.5% YTM

(all price quotes are in Canadian Dollars, CAD)

This week, Durig Capital looks at a company that focuses on children’s content and brands. DHX Media (TSX: DHX; NASDAQ: DHXM) is the company behind such well-known names as Peanuts, Teletubbies, Inspector Gadget and the Degrassi franchise. With children spending more time viewing content not only through traditional television and cable, but also on various devices with online streaming capabilities, DHX is looking to optimize its proprietary children’s content through various channels. Having acquired the rights to the Peanuts brand a few years ago, the company is now starting to realize revenues from this iconic brand through licensing agreements with retailers like Lands’ End, Baskin Robbins, Tupperware, Levi’s and Macy’s just to name a few.