$CHK Chesapeake Energy's stock falls toward 20-year low, as crude oil futures drop

Shares of Chesapeake Energy Corp. CHK, -2.26% sank 3.4% toward a fresh 20-year low Tuesday, as crude oil futures swung to losses amid growing concerns over U.S.-China trade talks scheduled for later this week. 

Analyst John Gerdes at MKM Partners reiterated his neutral rating and $1.20 fair value estimate on the oil and gas production company's stock, saying his estimates for third-quarter and full-year production are below expectations. He also expects Chesapeake to cut capital spending to about $1.8 billion in 2020 from about $2.2 billion this year. 

Meanwhile, crude oil futures dropped 1.3%. Among trade concerns, the U.S. blacklisted 28 Chinese companies, citing their alleged role in human-rights violation, Bloomberg reported that the Trump administration was discussing possible restrictions on capital flows into China and the South China Morning Post reported that the China delegation is already planning to cut short its stay in Washington by one night. 

The stock was on track to close at the lowest price since March 1999. It has plunged 29% over the past three months, crude oil futures have shed 9.5% and the S&P 500 SPX, -0.97% has lost 2.3%.