|Bid||0.00 x 1200|
|Ask||20.30 x 4000|
|Day's Range||17.32 - 18.41|
|52 Week Range||12.01 - 29.67|
|Beta (3Y Monthly)||0.99|
|PE Ratio (TTM)||N/A|
|Earnings Date||Mar 5, 2019 - Mar 11, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||24.85|
The immediate fears surrounding Chesapeake Energy (NYSE:CHK) appear to have passed. A falling stock market and plunging oil prices late last year led to a selling spree in CHK stock. However, as oil prices have moved back above the $50 per barrel mark, interest in CHK returned. Still, for all of these improvements, Chesapeake Energy stock remains a struggling penny stock. As such, a sustained drop in oil prices could compromise the profits on which CHK has slowly built a recovery. Still, assuming it can stay the course and continue to reduce its debt, CHK stock appears positioned for an eventual move higher. ### CHK Stock Is Back. . . To Its Slow Recovery CHK stock has enjoyed a dramatic recovery since Christmas Eve. From its 52-week low of $1.71, it has surged to around $2.90 per share range in under a month. InvestorPlace - Stock Market News, Stock Advice & Trading Tips A few factors have worked in favor of CHK stock in that time. For one, the overall market recovered. The S&P 500 has increased by over 11% since the December 24th low. Oil prices, which saw a surprisingly dramatic plunge in the last months of 2018, have begun to recover. As a result, West Texas Intermediate (WTI) crude again trades at over $50 per barrel. ### Both Risk and Reward Lies in the Balance Sheet While concerns of an impending bankruptcy have abated, this takes us back to the scenario described in my previous article on CHK stock. * 7 Companies Apple Should Consider Buying Chesapeake remains a $2.55 billion company with negligible cash reserves. It also still holds almost $9.4 billion in long-term debt. This may explain why CHK remains a penny stock despite a 4.5 forward P/E ratio. Given these circumstances, CHK stock remains a poor choice for risk-averse investors. However, for those who can tolerate more risk and want a speculative play, I see a high degree of potential for Chesapeake. For one, despite the high costs of servicing its debt, analysts forecast profits every year through at least fiscal 2020. As it realizes those profits, Chesapeake can pay down more of its debt. Reduced debt should lead to a higher CHK stock price over time. This virtuous cycle of falling debt and higher equity would return Chesapeake to financial stability in time. ### Strategic Moves Should Pay Off, Eventually I think the strategic moves that might have concerned investors will ultimately build confidence in CHK. CEO Doug Lawler announced that the company would reduce active rig counts from 18 to 14 for 2019. Some might wonder how reducing the number of rigs improves the business. My colleague James Brumley believes it helps. He described this move as prioritizing "quality over quantity," and I agree. With oil prices down by almost one-third from their October highs, I think this makes sense. The production level of 462,000 to 464,000 barrels of oil equivalent per day fell from last year's numbers. However, it comes in ahead of the 448,000 per day analysts had expected. Also, the costs of the proposed $4 billion acquisition of Wildhorse Resources (NYSE:WRD) probably made some investors nervous as well. However, it increases the company's stake in oil, which for now produces much higher margins than natural gas. Speaking of natural gas, its margins should also improve over time. CHK remains one of the largest natural gas producers in the country. As such, it can benefit from the burgeoning export industry in liquefied natural gas (LNG). A third terminal began LNG production in Corpus Christi, Texas late last year. Several other terminals are in the planning stages, and analysts estimate that the U.S.'s export capacity will more than double this year. Both Cheniere Energy (NYSEAMERICAN:LNG) and Dominion Energy (NYSE:D) operate terminals. In the coming months, industry analysts expect Kinder Morgan (NYSE:KMI) and Freeport LNG to finish construction on their terminals. ### The Bottom Line on CHK Stock For all of the price fluctuations and possible strategies that can affect CHK stock, maintaining a virtuous cycle of falling debt and rising stock prices remains critical to inspiring confidence. The immediate fears caused by the drop in oil prices appear to have passed. Oil again trades over $50 per barrel. Also, production should become more focused once the Wildhorse Deal closes in February. Moreover, prospects for natural gas should only improve as more LNG export terminals come online. * 7 Retail Stocks to Buy for the Rise of Menswear Still, for all of the optimism, debt levels remain well above the market cap. But profit forecasts for CHK stock offer a plausible path back to financial stability. If debt continues falling, those investors who bear the high risks of CHK should enjoy massive gains as Chesapeake stabilizes. However, no matter how much oil and natural gas prices influence moves in the stock, it is debt and equity that will ultimately define CHK stock. 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 * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy Compare Brokers The post Balance Sheet Numbers Are Key for Chesapeake Energy Stock appeared first on InvestorPlace.
Preqin has released figures on everything from buyouts to venture capital activity to private equity fundraising. Among the highlights: That 2018 was the most active year ever recorded for private equity-backed buyout deals and the second-highest deal value since the global financial crisis in 2006-2007.
Chesapeake Energy (NYSE:CHK) announced last week that it was dialing back its active rig count, from 18 to what should be an average of 14 for 2019. The scaled-back capacity is largely in response to falling gas and oil prices, which have badly hurt CHK stock. With no certainty as to when prices might rebound, most energy companies are rightfully becoming pickier about which assets to continue operating. On the surface, the decision by CHK to cut its rig count is a step in the wrong direction; fewer rigs means less production, only exacerbating the revenue headwind caused by weaker commodities prices. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks With Growth on the Horizon However, there's a reason why CHK stock jumped on the news. Ultimately, Chesapeake Energy stock is moving closer to a recovery from a big pullback that it suffered late last year. CHK stock is in that position because years of its streamlining work are starting to bear fruit in a big way. ### Reconfiguring The 2014 implosion of oil prices -- and to a lesser degree, natural gas prices -- indiscriminately hammered the energy sector. From giants like Exxon Mobil (NYSE:XOM) to the smallest, nimblest names like Helmerich & Payne (NYSE:HP), all were sent scurrying by a meltdown none of them saw coming. There was nowhere and no way to hide. CHK was no exception. At least in one regard, however, the beating oil prices and energy stocks took set the stage for a long-overdue, positive outcome. That is, nearly all of the companies in the sector took steps to become more operationally efficient and to use their capital more effectively. Not all of these companies regrouped as well as others, however. Broadly speaking, CHK improved itself more than most of its competitors. Much of its restructuring centered around the sale of natural gas properties in Ohio's Utica basin. The $2 billion in proceeds from that transaction were used to pay down what was then well over $9 billion in debt. In early 2018, CHK sold properties in Oklahoma for a more modest $500 million. In early 2016, it shed $700 million worth of assets. The company's shrinking pile of debt has undoubtedly given CHK the breathing room it needs to address new opportunities. ### Quality Over Quantity But CHK CEO Doug Lawler isn't merely shrinking his way to better viability. Instead, Lawler is looking to aggregate a network of properties that he knows the company can operate cost-effectively. Sometimes that means selling, but sometimes it means buying. That efficiency is measurably taking shape. The company's preliminary fourth-quarter results and 2019 outlook, which were posted last week, included this statement: "We expect our capital efficiency to improve in 2019 as total net capital per rig line is projected to decrease by 15 to 20 percent compared to 2018." The location of the company's assets has a great deal to do with that progress. CHK is increasingly focused on its Eagle Ford assets, which delivers the highest profit margins among the company's properties. The pricing of crude around the nearby Gulf Coast is above the industry average, and the company doesn't intend to lower its rig count in that area. Indeed, the upcoming acquisition of WildHorse Resources (NYSE:WRD) will add to its fruitful Eagle Ford exposure. CHK plans to devote four rigs to the assets it's getting from WildHorse. ### The Outlook of CHK Stock At the end of the preliminary Q4 report, Lawler stated,"The improvement in our capital efficiency, along with our focus on our high-margin oil investments, should result in higher operating cash flow and stronger margins in 2019 compared to 2018." To that end, approximately 16 million barrels of its 2019 oil production is hedged at $58.61, versus the current market price of less than $52 per barrel. Granted, most energy outfits are becoming more cost-effective through streamlining, reorganizing and hedging, and CHK is still not where it ultimately aims to be, from an operational standpoint. Asset sales never quite generate as much money as forecast, and acquisitions like WildHorse Resources are never quite as cheap as hoped. But nevertheless, Chesapeake Energy stock is coming out of its fourth-quarter funk, as investors increasingly understand the overhaul that Lawler is putting in place is a slow, painstaking process that's worth the wait. That said, CHK stock is still well-positioned to deliver quick, outsized gains if oil and gas prices end up ripping higher from here. That's a distinct possibility, too, with OPEC rumored to be mulling a production cut to buoy recently-depressed prices. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post Chesapeake Energy Stock Remains a "Best-of-Breed" Pick appeared first on InvestorPlace.
The South Texas Drilling Permit Roundup is a weekly review of new drilling permit applications filed with the Railroad Commission of Texas for the 33-county area that encompasses the Eagle Ford Shale and surrounds Bexar County.
The job cuts will be effective as of the closing date of the acquisition, which is expected to occur between Feb. 1 and Feb. 14.
Minneapolis-based Redhawk Wealth Advisors Inc. purchased 13,055 shares of the oil and natural gas company's stock, valued at about $309,000, in the third quarter, according to an SEC filing. In October, Chesapeake Energy Corporation agreed to acquire WildHorse Resource Development Corp. in a cash and stock deal valued at about $3.98 billion. Houston-based WildHorse Resource Development focuses on the acquisition, exploitation, development, and production of oil, natural gas, and natural gas liquid resources.
Now trading below $3, it’s got a market cap of $2.4 billion and is laden with $9.4 billion of long-term debt, a whopping 400% of its shrinking market valuation. CHK stock has been a dog for some time. Sure, the company’s found a way to push the ball down the road by merging with WildHorse Resource Development (NYSE:WRD).
Is WildHorse Resource Development Corporation (NYSE:WRD) a good investment right now? We check hedge fund and billionaire investor sentiment before delving into hours of research. Hedge funds spend millions of dollars on Ivy League graduates, expert networks, and get tips from industry insiders. They sometimes fail miserably but historically their consensus stock picks outperformed the […]
Rigrodsky & Long, P.A. announces that it is investigating potential legal claims against the board of directors (the “Board”) of WildHorse Resource Development Corporation (“WildHorse” or the “Company”) (NYSE: WRD) related to the Company’s entry into an agreement to merge with Chesapeake Energy Corporation (“Chesapeake”) (NYSE: CHK) in a transaction announced on October 30, 2018 (the “Proposed Transaction”). On October 29, 2018, the Board caused WildHorse to enter into an agreement and plan of merger (the “Merger Agreement”) with Chesapeake. Pursuant to the terms of the Merger Agreement, shareholders of WildHorse can elect to receive either 5.989 shares of Chesapeake common stock or a combination of 5.336 shares of Chesapeake common stock and $3.00 in cash for each share of WildHorse common stock.
Shares of Chesapeake Energy Corp. bounced sharply off a 10-month low Friday, as a big rally in oil prices helped offset J.P. Morgan analyst Arun Jayaram turning bullish on the oil and gas production company. Jayaram cut his rating to underweight, after being at neutral for at least the past three years, citing concerns over near-term headwinds from the $4 billion WildHorse Resource Development Corp. announced in late October. The stock rallied 2.6% in morning trade, after closing Thursday at the lowest level since Feb. 21. Jayaram said that although the acquisition, which provided increased oil weightings, was a "necessary step" to turn the corner on its turnaround plan, "the stock will likely be a 'show me' situation" as investors generally had mixed views on the East Texas Eagle Ford plays. Meanwhile, the energy sector was broadly higher, with the SPDR Energy Select Sector ETF up 1.6% with 24 of 25 components gaining ground, as oil prices jumped after reports that OPEC and Russia agreed to production cuts. Chesapeak's stock has tumbled 31% over the past three months, while the energy ETF has shed 10% and the S&P 500 has lost 7.1%.
NEW YORK , Dec. 6, 2018 /PRNewswire/ -- Juan Monteverde , founder and managing partner at Monteverde & Associates PC , a national securities firm headquartered at the Empire State Building in New York ...
Due to its incredibly-volatile nature, I haven’t had much love for Chesapeake Energy (NYSE:CHK). Chesapeake Energy made waves when it announced that it will merge with WildHorse Resource (NYSE:WRD). The markets punished CHK stock on the initial merger disclosure, which then prompted a question: was most of the bearishness baked in?
NEW YORK, NY / ACCESSWIRE / December 4, 2018 / WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of WildHorse Resource Development ...
Falling oil prices have created a conundrum for Chesapeake (NYSE:CHK). Now, just ahead of CHK’s upcoming merger with WildHorse Resource (NYSE:WRD), CHK stock has become riskier Still, despite the risks of falling oil prices and the added costs of the merger, natural gas can still enable CHK stock to make a comeback. After oil prices plunged a few years ago, the company found itself struggling to survive as its shares reached penny-stock status, with the market cap of CHK stock falling well below the company’s debt load.
NEW YORK , Nov. 27, 2018 /PRNewswire/ -- Apogee Enterprises, Inc. (APOG) Lifshitz & Miller announces investigation into possible securities laws violations in connection with the Company's CEO noting ...
NEW YORK, Nov. 20, 2018 -- In new independent research reports released early this morning, Fundamental Markets released its latest key findings for all current investors,.
Under the terms of the proposed transaction, shareholders of WildHorse will receive only 5.989 shares of Chesapeake common stock or a combination of 5.336 shares of Chesapeake common stock and $3 in cash for each share of WildHorse that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.