|Bid||1.6100 x 317700|
|Ask||1.6300 x 47300|
|Day's Range||1.5700 - 1.6400|
|52 Week Range||1.5700 - 4.9800|
|Beta (3Y Monthly)||2.61|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Shares of Kinder Morgan Inc. dropped Thursday in active trading, dragged down by a disappointing earnings report and a selloff in crude oil and natural gas prices.
Shares of Chesapeake Energy Corp. surged 3.4% in afternoon trading Friday, to bounce off a 20-year closing low, as a a rebound in oil prices helped provide a boost. The oil and gas company's stock had tumbled 7.1% on Thursday, and sank 18% amid a four-session losing streak, to the lowest close ($1.58) since April 1999. On Friday, crude oil futures rose 0.7% to snap a four-session losing streak, helped by reports that Iran seized a U.K.-flagged ship in the Gulf of Oman. The correlation coefficient between Chesapeake's stock and crude oil futures, over the past two decades, has been 0.78, in which 1.00 would mean they move perfectly in sync. In comparison, Chesapeake's correlation with the S&P 500 is negative 0.28.
(Bloomberg Opinion) -- Saturday is shaping up to be national air-conditioner day. And while we ordinary humans love a “heat dome” about as much as a “polar vortex,” natural gas bulls should be all over that surge in electricity demand. But they’re nowhere to be seen.“Cooling-degree days” are a measure of how hot it is relative to normal. Since July 2011, when the data series begins on the Bloomberg Terminal, there have been 22 weeks where the forecast for cooling-degree days was 90 or more (translation: hot). This week, coming in at 93, is one of them. But with natural gas currently hovering at about $2.30 per million BTU, it also scores as the weakest week in terms of pricing.This summer of more heat than light is a microcosm of the broader problem facing the exploration and production business. And it’s a searing reminder of some salient points as quarterly earnings calls beckon.Natural gas prices have been moribund for a while. Having cracked the code on shale first, resurgent U.S. gas supply overwhelmed demand growth years ago. The migration of fracking to oil – which tends to bring a lot of associated gas with it – exacerbated this. At several points this year, gas has changed hands in west Texas at negative prices; in other words, producers have paid customers to take it off their hands.Price-insensitive gas production, as well as shale’s relatively short development schedule, is why even a heatwave does little for the market. Inventory may be running a bit below average for this time of year (although the gap has been shrinking since March). But why worry when there’s a seemingly endless supply of the stuff coming up in ever bigger quantities from fracked wells?Oil producers suffer similarly from too much of a good thing. U.S. crude oil output is forecast to surge this year – just as it did last year. And 2020 is shaping up for a big increase, too.This is why, just as the prospect of sweaty armpits does nothing to arouse passions in the gas market, oil prices are seemingly impervious to the usually trusty aphrodisiacs of OPEC cuts and threats of war (ominous economic data and trade conflicts haven’t helped either).The sheer indifference to oil and gas is evident not just in the energy sector’s miserable sub-5% weighting in the S&P 500 Index, but also the futures markets for the commodities themselves.Hedge funds’ net length in the three big crude oil contracts combined has dropped sharply since April, back toward the depths plumbed in January and February, when Brent was about $10 lower than today. More telling, perhaps, is the slump in open interest in general, with analysts at JBC Energy noting in a report this week that speculative positions in the Nymex West Texas Intermediate benchmark are at their lowest level since 2013. The picture looks a bit better when considering the big three together, but not much:The combination of shale, OPEC, Iranian saber-rattling, Trumpian tweeting, and trade tiffs has made betting on oil’s direction a hazardous and ultimately unpopular pursuit. As for speculative interest in natural gas, combined positions hit their lowest point in almost eight years in February, but have since expanded – all on the short side.Harsh as it may sound, the lesson oil and gas companies should draw from this is that no one cares about their oil and gas (not in the sense of investing, anyway). Which means one of the big reasons to own an E&P stock – a leveraged bet on oil and gas prices – is now a very small reason. Highly leveraged producers at the mercy of the oil and gas gods, such as Chesapeake Energy Corp. and California Resources Corp., may have offered a wild ride but not much else.So when producers lay out guidance for the second half of the year, investors will want to hear a message of restraint; taking it easy rather than ramping up production into a market that doesn’t need it. Giving free cash flow to investors, rather than free rein to frack crews, is the advisable option at this juncture. The industry largely took the opposite approach this time last year, taking a short, sharp rally in oil prices as a cue to bust through spending budgets. Investors responded with a year-end sell-off.The best way for E&P executives to spend this summer: play it cool.To contact the author of this story: Liam Denning at firstname.lastname@example.orgTo contact the editor responsible for this story: Mark Gongloff at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Investors seeking stocks with high reward potential might want to consider this pharmaceutical company, oil and gas driller, and wind blade maker instead of wading into the high-risk penny stock market.
Chesapeake Energy Corp NYSE:CHKView full report here! Summary * Perception of the company's creditworthiness is negative and weakening * ETFs holding this stock are seeing positive inflows * Bearish sentiment is high * Economic output in this company's sector is contracting Bearish sentimentShort interest | NegativeShort interest is high for CHK with between 15 and 20% of shares on loan. This means that investors who seek to profit from falling equity prices are currently targeting CHK. However, the last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding CHK are favorable, with net inflows of $7.52 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS MarkitThere is no PMI sector data available for this security. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator with a weakening bias over the past 1-month. CHK credit default swap spreads are rising towards their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to firstname.lastname@example.org.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Today we'll look at Chesapeake Energy Corporation (NYSE:CHK) and reflect on its potential as an investment...
On Monday, Jefferies reduced its target price on Chesapeake Energy ~50% to $1. This week, the company should close between $1.76 and $2.1 68.0% of the time.
ExxonMobil (NYSE:XOM) stock has so far enjoyed a good 2019. Coming off the stock market selloff of last fall, Exxon stock has risen by about 15% since the first of the year.Source: Shutterstock However, the stock has remained on a long-term downtrend since oil prices peaked more than five years ago. Although oil trades much higher than its 2016 lows, sectors such as natural gas, refining, and chemicals continue to hold ExxonMobil down.Until more of its segments see better pricing, XOM stock will struggle to rally far beyond current levels.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Exxon Stock Keeps Moving SidewaysBy segments, I do not necessarily mean oil. Yes, XOM has experienced some disruption from Tropical Strom Barry in the Gulf of Mexico. The temporary shutdown in offshore drilling could have an impact on earnings and perhaps create a buying opportunity in the stock. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond However, that does not necessarily mean traders will want to take advantage. Admittedly, I liked Exxon when I covered it back in early January. It then traded at around $72 per share and had begun to recover from the stock slump that hit the market just before Christmas. Since that time, it has had ups and downs but now trades at $78 per share.Still, what concerns me most about XOM stock is the fact that it never recovered from the mid-decade slump in oil prices. In the spring of 2014, the XOM stock price had topped $100 per share. Granted, at that time, oil prices had often topped $100 per barrel. Since oil prices had fallen below $30 per barrel by 2016, one can understand the subsequent drop in ExxonMobil stock.However, oil prices have recovered to about $60 per barrel today. XOM stock remains at about the same high-$70s per share range where it traded in early 2016. In that same time, its closest peer, Chevron (NYSE:CVX) has risen by more than 50%. Chevron and Exxon StockXOM stock is clearly not a terrible investment. It remains a diversified business that can earn profits and increase dividends regardless of oil prices. The company generated just over $36 billion in free cash flow in 2018. Moreover, its 4.5% dividend yield and 36-year track record of payout hikes remain a testament to its stability.Furthermore, ExxonMobil leads the world in refining and polyethylene production. It also remains the leading natural gas producer in the country. With natural gas, Chevron lags much smaller players such as Chesapeake Energy (NYSE:CHK), Anadarko Petroleum (NYSE:APC), and Devon Energy (NYSE:DVN).However, except on dividend yield and production levels, it finds itself continuously outmatched by Chevron. Moreover, according to Barron's, ExxonMobil will have to spend 75% more to increase its oil-equivalent production. It also faces weak margins in refining and chemicals in addition to low natural gas prices.Furthermore, both Exxon stock and Chevron trade at about the same price-to-earnings (PE) ratio. ExxonMobil's PE ratio stands at about 17.9 compared with 17.3. Both will see shrinking profits this year.However, analysts forecast a 21.3% decline for XOM. They predict a drop of 4.4% for Chevron. Chevron also looks poised for higher growth when earnings begin to increase for both companies. Although holders of XOM stock may earn more dividend income, Chevron stock will probably benefit more from its comparatively higher growth. Final Thoughts on Exxon StockDespite a surge in recent months, underperformance continues to define XOM stock. ExxonMobil has risen this year. However, the equity remains in a long-term downtrend.Although a storm in the Gulf may have only temporary effects on drilling, XOM investors will probably have to worry about low price levels in segments such as natural gas and refining for a longer period. Moreover, its archrival Chevron continues to grow faster and outperform ExxonMobil on most financial metrics.At current levels, XOM can offer relative stability and a generous dividend payout, but little else.As of this writing, Will Healy is long CHK stock. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Despite Moving Higher, Exxon Stock Still Underperforms appeared first on InvestorPlace.
Chesapeake Energy (CHK) closed at $1.90 in the latest trading session, marking a -0.52% move from the prior day.
Energy stocks traded broadly higher Wednesday, on the back of a surge in oil prices after upbeat government supply data and amid concerns over a storm brewing in the Gulf of Mexico. The SPDR Energy Select Sector ETF climbed 1.1%, and was the biggest gainer among the ETFs tracking the 11 S&P 500 sectors, as 28 of the energy ETF's (XLE) 29 equity components gained ground. The biggest gainer was Noble Energy Inc.'s stock , which rose 3.5%. Among other more active components, shares of Halliburton Co. edged up 0.3%, Kinder Morgan Inc. gained 0.3%, Apache Corp. advanced 1.5% and Exxon Mobil Corp. hiked up 1.3%. The lone decliner was Anadarko Petroleum Corp.'s stock , which slipped 0.1%. Elsewhere, Chesapeake Energy Corp.'s stock surged 3.0%. Meanwhile, crude oil futures ran up 4.1% toward a 5th-straight gain, and a 7-week high. The XLE has now lost 4.9% over the past three months, while crude oil futures have declined 6.9% and the S&P 500 has gained 3.8%.
Last week's bullishness didn't survive the weekend. The S&P 500 fell 0.48% on Monday, as the weight and scope of the gains since late May started to register with investors.Source: Allan Ajifo via Wikimedia (Modified)General Electric (NYSE:GE) took the biggest toll on the broad market, losing nearly 3% of its value, while Chesapeake Energy (NYSE:CHK) tumbled more than 2% to extend weakness that has pulled the stock closer to new multi-month lows.At the other end of the spectrum, Overstock.com (NASDAQ:OSTK) jumped more than 13% after KeyBanc analyst Josh Beck said it was capable of competing with Amazon (NASDAQ:AMZN). He already rated OSTK at "Overweight," but raised his target to $350 per share.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Stocks for 2019: A Volatile First Half Headed into Tuesday's trading, it's the stock charts of Interpublic Group of Companies (NYSE:IPG), Eli Lilly (NYSE:LLY) and SYSCO Corporation (NYSE:SYY) that merit the closest looks. This trio of names is knocking on the door of major moves. Eli Lilly (LLY)Eli Lilly has been sliding lower since peaking in March, breaking below the pivotal 200-day moving average line in early June. For a short while after that, it looked as if the bulls might have drawn a line in the sand. And, they may well have.As of Monday's close though, a that major line in the sand that's acting as support is under some serious pressure. Worse, it's being tested as a floor again after bumping into resistance at the one place it couldn't afford to hit resistance. Click to Enlarge * The ceiling in question is the 50-day moving average line, plotted in purple. Eli Lilly shares tried twice to crawl back above it since June (highlighted), failing both times. * The recent support at $110.73, marked with a dashed yellow line on the daily chart is even more significant than it seems. As the weekly chart shows, that's where the 38.2% Fibonacci retracement line lies. * Should that floor fail to keep the stock propped up, there's a minor floor just under $105, plotted with a red dashed line, though the next Fibonacci retracement line at $97 is also worth watching. SYSCO Corporation (SYY)Each and every stock has its own trading personality. That is to say, it exhibits tendencies in a way that no other name does. SYSCO is no exception to that norm. Its personality is one that uses, for better and worse, moving average lines as support and resistance levels. When it can cross one, a major move tends to take shape.The interplay of SYY over the course of the past several weeks has set up a potential breakout thrust. But, right on cue -- so far -- SYSCO has once again bumped into resistance at a key line. If it can be broken, there's a great deal of upside to traverse. * 7 Simple Ways for Young Investors to Invest Their First $1,000 Click to Enlarge * The line in question is the purple 50-day moving average, with the recent encounter highlighted along with other instances of support or resistance. * Zooming out to the weekly chart we can see the rebound since late last year is an upswing within in even longer-term rising trading range that extends back to 2015. * It's modest thus far, but a glance back at the past several weeks shows more bullish volume than bearish volume, even if erratic. Interpublic Group of Companies (IPG)Interpublic Group of Companies shares haven't made any net progress since late 2015. But, the past year and a half has been constructive … in a sense. The stock has been squeezed toward the tip of a converging wedge pattern, and though there's a little more room left to move deeper into that point, the bulls are taking another shot at punching through the upper boundary of the wedge shape. Click to Enlarge * The wedge pattern is framed by blue lines on both stock charts. Monday's close has left Interpublic Group shares right at the upper line. * Also note on the weekly chart that even though the stock has only moved sideways (if not lower) for months, the rising accumulation-distribution line says there are more buyers than sellers. * If the budding rally effort takes hold, there's another ceiling just under $26, where IPG topped several times in 2017 and early 2018.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about him at his website jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best Stocks for 2019: A Volatile First Half * 7 Simple Ways for Young Investors to Invest Their First $1,000 * 6 Stocks to Buy Based on Insider Buying The post 3 Big Stock Charts for Tuesday: Eli Lilly, SYSCO and Interpublic Group appeared first on InvestorPlace.
Shares of Chesapeake Energy Corp. slumped 3.3% on heavy volume in morning trading Tuesday, as a selloff in crude oil prices weighed on the oil and gas exploration and production company, as well as the entire energy sector. Trading volume was 14.2 million shares, enough to make the stock the most actively traded on the NYSE. Meanwhile, the SPDR Energy Select Sector ETF shed 1.3% to be the worst performing ETF tracking the S&P 500's 11 key sectors, as 25 of 29 components lost ground. Crude oil futures tumbled 2.7%, amid lingering worries about the global economy and uncertainties about the trade environment. "We believe the challenge put to most E&Ps by investors today is to derive a combination of growth and [free cash flow] all while generating a sufficient return," wrote SunTrust Robinson Humphrey analyst Neal Dingmann in a note to clients. "Requirements such as these are difficult in any sector but even more so in a depleting arena such as energy." Chesapeake Energy's stock has tumbled 40.6% over the past three months, while the energy ETF has shed 5.4% and the S&P 500 has gained 3.5%.
At 7:12 AM ET on July 1, US crude oil active futures were trading 2.2% higher compared to last week. Energy stocks might open higher on July 1 due to oil's gains.
Chesapeake stock has fallen 60% in the last year, but Morgan Stanley says the company is in good position to pay down debt and benefit from asset sales in the months ahead.
The impact fee totals hit $242.9 million, not including $8.8 million in payments from previous years that had been withheld in a court case.
Chesapeake Energy and Range Resources were among the stocks that had the highest correlation with US crude oil prices. On June 19–26, US crude oil active futures rose 10%.
Chesapeake Energy had the highest negative correlation with natural gas prices. Cabot Oil & Gas had the most negative correlation of 88.8% with US crude oil prices.
Natural gas prices fell to their lowest level in more than three years after U.S. government data revealed a weekly injection in domestic stockpiles that was much more than expected.
In the latest trading session, Chesapeake Energy (CHK) closed at $1.95, marking a -1.52% move from the previous day.
The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as […]