Chesapeake (CHK) Gears Up to Post Q4 Earnings: What's in Store?

Zacks Equity Research

February 22, 2022 at 8:55 AM·3 min read

Chesapeake Energy Corporation CHK is set to report fourth-quarter 2021 results on Feb 23, after the closing bell.

In the last reported quarter, Chesapeake Energy comfortably beat the Zacks Consensus Estimate. It beat the consensus estimate thrice in the prior four quarters, the average earnings surprise being 23.1%. This is depicted in the graph below:

Chesapeake Energy Corporation Price and EPS Surprise

Chesapeake Energy Corporation price-eps-surprise | Chesapeake Energy Corporation Quote

Let’s see how things have shaped up prior to this announcement.

Trend in Estimate Revision

The Zacks Consensus Estimate for the company’s fourth-quarter earnings per share of $2.40 has witnessed one downward revision and two upward revisions in the past 30 days. The estimated figure suggests an improvement of 105.6% from the prior-year number.

The consensus estimate for fourth-quarter revenues of $1.1 billion indicates a 14.1% decline from the year-ago reported figure.

Factors to Consider

The pricing scenario of natural gas in fourth-quarter 2021 improved drastically from the prior-year period, thanks to the healthier U.S. liquefied natural gas (LNG) exports. The favorable natural gas price is likely to have favored Chesapeake Energy since it is a leading producer of the commodity. Chesapeake Energy has a solid footprint in unconventional onshore oil and natural gas resources in the United States.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Chesapeake Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Chesapeake Energy’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Chesapeake Energy currently carries a Zacks Rank #3.

Stocks to Consider

Here are a few firms that you may want to consider as these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

Pembina Pipeline Corporation PBA has an Earnings ESP of +20.43% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pembina Pipeline is scheduled to release fourth-quarter results on Feb 24. The Zacks Consensus Estimate for PBA’s earnings is pegged at 47 cents per share, suggesting an increase of 11.9% from the prior-year reported figure.

PDC Energy, Inc. PDCE has an Earnings ESP of +3.50% and a Zacks Rank of 3.

PDC Energy is scheduled to report fourth-quarter results on Feb 28. The Zacks Consensus Estimate for PDC Energy’s earnings is pegged at $2.40 per share, suggesting an improvement of 118.2% compared to the prior-year reported figure.

Western Midstream Partners, LP WES has an Earnings ESP of +2.57% and a Zacks Rank #2.

Western Midstream is scheduled to release fourth-quarter earnings on Feb 23. The Zacks Consensus Estimate for Western Midstream’s earnings is pegged at 65 cents per unit, suggesting a year-over-year improvement of almost 5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report

Western Midstream Partners, LP (WES) : Free Stock Analysis Report

PDC Energy, Inc. (PDCE) : Free Stock Analysis Report

Pembina Pipeline Corp. (PBA) : Free Stock Analysis Report

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Chesapeake Energy Corporation Price and EPS Surprise

Trend in Estimate Revision

Factors to Consider

Earnings Whispers

Stocks to Consider

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