2.59 -0.01 (-0.38%)
After hours: 7:55PM EST
|Bid||2.58 x 1800|
|Ask||0.00 x 4000|
|Day's Range||2.5700 - 2.6900|
|52 Week Range||1.7100 - 5.6000|
|Beta (3Y Monthly)||3.15|
|PE Ratio (TTM)||N/A|
|Earnings Date||Feb 27, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||2.96|
For the life of my I don't know why people keep flogging Chesapeake Energy (NYSE:CHK). They had a good run early this decade, but they're overwhelmed by $10 billion in long-term debt, which means any success goes to the bondholders. Chesapeake Energy stock is not what it once was.Source: Philadelphia 76ers Via FlickrEven before founder Aubrey McClendon died in 2016, his successors were moving away from the northeastern natural gas that made their name, into oil. Then gas prices went up because gas had delivery infrastructure, and Chesapeake couldn't get their price on the oil.Their latest move is the $3.98 billion purchase of Wild Horse Resource Development, which does bring some Eagle Shale acres and two new board members. The combined company is now the second-leading operator in the play, which extends in an arc from the Del Rio up toward Dallas. Chesapeake shareholders own 55% of the combination.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe deal also brought Chesapeake $980 million more debt. Aubrey McClendon and Chesapeake Energy StockThe death of McClendon, who at the time was under indictment for trying to rig lease prices, should have sounded the death knell for the company, because McClendon was its brains as well as its heart.It was McClendon who made fracking pay early in the decade, working an eastern Pennsylvania formation called the "Marcellus Shale" and bringing up a wealth of natural gas that still means the eastern seaboard is energy independent. But there was too much of a good thing, prices crashed, and the debt used to acquire leases became an unmanageable burden after 2014.Since then Chesapeake has become what I call the "Flying Dutchman" of the oil patch, going from play to play, trading Ohio for Texas, then Texas for Wyoming, always finding a combination of oil, gas and natural gas liquids but doing little more than paying off bondholders.The company always has another story to tell and it always looks promising, but that promise is always a year or two away. The company trades on its name and on its legend, but its results always come up short.Chesapeake is next expected to report earnings Feb. 27, with 16 cents per share expected. Multiply that by four, divide by the stock price and this looks like a winner. But the earnings aren't reliable, they've regularly been followed by losses, and you're not going to see a dividend. Bonds and Chesapeake Energy StockChesapeake has become a company run for its bondholders. Chesapeake managed to sell $1.25 billion more in debt last year, just before the latest crash in oil prices. Why did people buy? Probably because, while Chesapeake hasn't delivered any return to shareholders in years, it has been good for its debt service, and these bonds were priced at 7.5%.The company's 2021 debt is currently rated at B3, well into the junk category, but speculators are finding profits in a thinly-traded market. Buy them on pessimism, sell on optimism, and a savvy investor can find a capital gain as well as a handsome return.But it's going to take nerves of steel, your timing must be exquisite, and information on the market is going to cost you money. Personally, I prefer the Indian casino to betting on Chesapeake Energy stock.Dana Blankenhorn is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family, available now at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 6 Hot Stocks For Goldman Sachs' New Investing Strategy * 10 Smart Money Stocks to Buy Now * The 10 Best Cheap Stocks to Buy Right Now Compare Brokers The post Chesapeake Energy Stock Can't Outrun Its Bad Decisions Forever appeared first on InvestorPlace.
Where Natural Gas Prices Could End Up in the Next WeekNatural gas’s implied volatility On February 21, natural gas’s implied volatility was 22.2%, ~18.4% below its 15-day moving average. In the trailing week, natural gas’s implied volatility
Energy Sector Is Isolated from Trade Talk OptimismHighest level in 2019On February 21, US crude oil April futures fell 0.3% and settled at $56.96 per barrel. On the same day, WTI crude oil prices made an intra-day high of $57.61—the highest level
Why Range Resources' Earnings May Have Slowed in Q4Range Resources earningsRange Resources (RRC) is set to announce its fourth-quarter earnings results on February 25. Based on analysts’ consensus estimates, its net income per diluted share could
'Death Cross' Looming for Natural Gas Prices(Continued from Prior Part)Futures spreadOn February 20, the natural gas futures for April 2019 closed at a premium of ~$0.07 to the April 2020 futures. On February 13, the futures spread was at a small
'Death Cross' Looming for Natural Gas Prices(Continued from Prior Part) Natural gas rig countThe natural gas rig count was at 194 last week, which was one less than the previous week. The natural gas rig count has fallen ~87.9% from its record
'Death Cross' Looming for Natural Gas Prices“Death Cross” looming for natural gasOn February 20, natural gas’s 50-day moving average was 2.7% above the 200-day moving average. The difference between the two moving averages has contracted
Chesapeake (CHK) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Oil Market: Analyzing Key TrendsUS crude oilOn February 19, US crude oil prices rose 0.8% and settled at $56.45 per barrel—the highest closing level for active US crude oil futures since November 19. A fall of 0.4% in the US dollar could be a
Along with many other stocks this year, Chesapeake Energy (NYSE:CHK) has posted a nice return. Note that the shares are up about 19%. This is in-line with other operators like Devon Energy (NYSE:DVN), but this masks a roller-coaster ride. First of all, Chesapeake Energy stock is still well off its high.Since July, the shares have plunged from $5.29 to $2.50. Something else: from Jan. 30 to Feb. 8, Chesapeake Energy stock fell every single day! * 7 Financial Stocks With Accelerating Growth What's going on? Well, the overall volatility in the energy markets has certainly been a major factor, as there has been continued weakness in crude oil and natural gas prices.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSome of the reasons include the strength in the dollar (many commodities are purchased with U.S. dollars), rising production (especially in the U.S.) and a global economic slowing, such as in China and Europe.Of course, the energy market can turn quickly. But at least for now, there are few catalysts to get things back on track - and this should weigh on Chesapeake Energy stock. Operations and Chesapeake Energy StockNow I believe that the company is well run. Since coming on board as CEO in 2013 after a successful stint at Anadarko Petroleum (NYSE:APC), Robert Lawler has wasted little time in improving the operations and the balance sheet.The actions have included more than $1 billion in annual cost cuts and reductions of over $12 billion in debt and more than $10 billion in legacy commitments. Lawyer has also been effective in finding ways to improve cash flows and be disciplined with capital investments.Despite all this restructuring, Lawler has still somehow found ways to expand the company's unconventional assets. There are currently about 14,900 oil and natural gas wells in areas like the Eagle Ford Shale in South Texas, the Anadarko Basin in northwestern Oklahoma, Marcellus Shale in the northern Appalachian Basin in Pennsylvania and Powder River Basin in Wyoming.The recent $3.977 billion acquisition of WildHorse, which is an oil and gals company with assets in the Eagle Ford Shale and Austin Chalk formations in southeast Texas, should also be a positive for CHK stock.With the deal, the oil production is estimated to more than double by the end of 2020 and will bring the overall oil mix to about 30%. There should also be a 50% improvement in EBITDA margins. As for the proved-but-undeveloped oil reserves, these have tripled to 320 million barrels.WildHorse's Eagle Ford holding is particularly attractive. It has about 420,000 acres and about 80% to 85% is underdeveloped. So yes, there is quite a bit of potential. Chesapeake's proven track record with cost efficiencies should also be a big help. In fact, there are expected to be $200 million to $280 million in annual savings over the next five years from the acquisition. Bottom Line on CHK StockIt's really tough to find faults with Lawler's actions. But unfortunately, the key driver is the energy market. And for the most part, the fundamentals are looking weak. They include a terrible combination of oversupply and lagging demand.Yet this does not necessarily mean you should avoid CHK stock. As InvestorPlace.com's James Brumley has noted, the company is a "best-of-breed pick within the exploration and production arena."But I think CHK stock is still for those who are willing to take a long-term view on things. Although, with the stock well off its highs, the current price point does look reasonable, with the forward price-to-earnings ratio at a mere 4X.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Hot Stocks Leading the Market's Blitz Higher * 7 Strong Buy Stocks With Over 20% Upside * 5 Growthy Stocks Trading Below 15X Earnings Compare Brokers The post Chesapeake Energy Stock Looks Great, If Youare Willing to Wait appeared first on InvestorPlace.
Why Morgan Stanley Is Bullish on Range ResourcesMorgan Stanley is bullish on Range Resources On February 13, Morgan Stanley (MS) raised its target price on Range Resources (RRC) by $1 to $12. On January 30, Morgan Stanley raised its target price
Natural Gas: Key Price Points for Next WeekNatural gas’s implied volatility On February 14, natural gas’s implied volatility was 25%, which was ~25.2% below its 15-day moving average. In the trailing week, natural gas’s implied volatility fell
Why ConocoPhillips Stock Doesn't Have Any 'Sell' RecommendationsWall Street analysts’ recommendation Based on Reuters data from 22 analysts tracking ConocoPhillips (COP), 45% recommended “holds,” 55% recommended “buys,” and none
OKLAHOMA CITY , Feb. 14, 2019 /PRNewswire/ -- Chesapeake Energy Corporation (NYSE:CHK) announces an innovative partnership to accelerate the company's digital transformation and data-driven growth initiatives. ...
Natural Gas Prices: What Are the Key Drivers?(Continued from Prior Part)Natural gas rig count The natural gas rig count was at 195 last week, which was three less than the previous week. The natural gas rig count has fallen ~87.9% from its record
Natural Gas Prices: What Are the Key Drivers?Natural gas outlook On February 12, the EIA (U.S. Energy Information Administration), in its Short-Term Energy Outlook report, downgraded Henry Hub natural gas spot to $2.83 per MMBtu (million British
Antero Resources' Earnings Could Jump 79%, but There's a RiskAntero Resources’ earnings could jump 79% Tomorrow, Antero Resources(AR) could report adjusted net income of $0.43 per share in Q4 2018, based on analysts’ consensus estimates. This
Why 'Sell' Recommendations Are Rising for Chesapeake EnergyAnalysts’ recommendationsBased on Reuters data from 23 analysts tracking Chesapeake Energy (CHK), 48% have recommended “holds,” 39% have recommended “sells,” and 13% have
Where Chesapeake Energy Might Trade in FebruaryChesapeake’s implied volatility On February 11, Chesapeake Energy’s (CHK) implied volatility was 72.5%, ~13.5% higher than its 15-day average. On the same day, CHK’s peers Range Resources (RRC)
Oil Prices: Is the Rebound Sustainable?US crude oilOn February 11, US crude oil prices fell 0.6% and settled at $52.41 per barrel. On the same day, US crude oil active futures made an intraday low of $51.23—the lowest level since January 17. A
In the latest trading session, Chesapeake Energy (CHK) closed at $2.40, marking a +0.42% move from the previous day.
Important Trends in the Energy Market Last Week(Continued from Prior Part)Energy stocksIn the week ending February 8, upstream stock Denbury Resources (DNR) fell the most among the energy stocks under review in this series, which include the