| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
CHK Stock Overview
Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids (NGL) from underground reservoirs in the United States.
Chesapeake Energy Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$71.52 |
| 52 Week High | US$73.66 |
| 52 Week Low | US$40.00 |
| Beta | 0 |
| 1 Month Change | 17.71% |
| 3 Month Change | 13.18% |
| 1 Year Change | n/a |
| 3 Year Change | n/a |
| 5 Year Change | n/a |
| Change since IPO | 58.97% |
Recent News & Updates
Chesapeake Energy Corporation (NASDAQ:CHK) Shares Could Be 38% Below Their Intrinsic Value Estimate
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Chesapeake Energy...
A Valuation Of Chesapeake Energy Based On Its Reserves
An oil and gas company's ultimate source of value is its underground oil and gas reserves. By comparing Chesapeake Energy's enterprise value to the value of its reserves, we can see if the company is undervalued. Depending on how you value the company's reserves, its stock could be either mildly overvalued or significantly undervalued.
Chesapeake Energy: Natural Gas Price Helps
Chesapeake reported a net loss of $345 million in 3Q21, or $3.51 per share, compared to a $745 million loss, or $76.18 per share, in the year-ago period. Production was 436K Boep/d this quarter, down 2% from the same quarter a year ago and up 0.7% sequentially. Chesapeake Energy increased the base dividend by 27% to $1.75 per share annually. The board authorized a $1 billion stock repurchase.
Shareholder Returns
| CHK | US Oil and Gas | US Market | |
|---|---|---|---|
| 7D | 3.2% | 4.6% | -0.5% |
| 1Y | n/a | 49.1% | 13.7% |
Return vs Industry: Insufficient data to determine how CHK performed against the US Oil and Gas industry.
Return vs Market: Insufficient data to determine how CHK performed against the US Market.
Price Volatility
| CHK volatility | |
|---|---|
| CHK Average Weekly Movement | 6.4% |
| Oil and Gas Industry Average Movement | 7.2% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.9% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: CHK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: CHK's weekly volatility (6%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1989 | 1,300 | Nick Dell'Osso | https://www.chk.com |
Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids (NGL) from underground reservoirs in the United States. The company holds interests in natural gas resource plays, including the Marcellus in Northern Appalachian Basin in Pennsylvania; Haynesville located in Northwestern Louisiana; Eagle Ford in South Texas; Brazos Valley in Southeast Texas; and Powder River Basin in Wyoming. As of December 31, 2020, it owned interests in approximately 7,400 oil and natural gas wells, including 5,900 properties with working interest and 1,500 properties with royalty interest; and had estimated proved reserves of 60 Mmboe.
Chesapeake Energy Fundamentals Summary
| CHK fundamental statistics | |
|---|---|
| Market Cap | US$8.38b |
| Earnings (TTM) | US$4.48b |
| Revenue (TTM) | US$6.46b |
1.9x
P/E Ratio1.3x
P/S RatioIs CHK overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| CHK income statement (TTM) | |
|---|---|
| Revenue | US$6.46b |
| Cost of Revenue | US$3.35b |
| Gross Profit | US$3.10b |
| Expenses | -US$1.37b |
| Earnings | US$4.48b |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 38.24 |
| Gross Margin | 48.08% |
| Net Profit Margin | 69.36% |
| Debt/Equity Ratio | 41.4% |
How did CHK perform over the long term?
See historical performance and comparisonDividends
2.4%
Current Dividend Yield1%
Payout RatioValuation
Is Chesapeake Energy undervalued compared to its fair value and its price relative to the market?
35.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CHK ($71.52) is trading below our estimate of fair value ($110.29)
Significantly Below Fair Value: CHK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CHK is good value based on its PE Ratio (1.9x) compared to the US Oil and Gas industry average (18.1x).
PE vs Market: CHK is good value based on its PE Ratio (1.9x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: CHK's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CHK is overvalued based on its PB Ratio (2.8x) compared to the US Oil and Gas industry average (2.2x).
Future Growth
How is Chesapeake Energy forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
-32.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CHK's earnings are forecast to decline over the next 3 years (-32.1% per year).
Earnings vs Market: CHK's earnings are forecast to decline over the next 3 years (-32.1% per year).
High Growth Earnings: CHK's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CHK's revenue (4.1% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: CHK's revenue (4.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CHK's Return on Equity is forecast to be high in 3 years time (29.5%)
Past Performance
How has Chesapeake Energy performed over the past 5 years?
9.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHK has a high level of non-cash earnings.
Growing Profit Margin: CHK became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CHK has become profitable over the past 5 years, growing earnings by 9.2% per year.
Accelerating Growth: CHK has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: CHK has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (17.4%).
Return on Equity
High ROE: CHK's Return on Equity (147.4%) is considered outstanding.
Financial Health
How is Chesapeake Energy's financial position?
Financial Position Analysis
Short Term Liabilities: CHK's short term assets ($1.7B) do not cover its short term liabilities ($2.5B).
Long Term Liabilities: CHK's short term assets ($1.7B) do not cover its long term liabilities ($1.8B).
Debt to Equity History and Analysis
Debt Level: CHK's net debt to equity ratio (13.5%) is considered satisfactory.
Reducing Debt: CHK had negative shareholder equity 5 years ago, but is now positive and has therefore improved.
Debt Coverage: CHK's debt is well covered by operating cash flow (98%).
Interest Coverage: Insufficient data to determine if CHK's interest payments on its debt are well covered by EBIT.
Balance Sheet
Dividend
What is Chesapeake Energy current dividend yield, its reliability and sustainability?
2.45%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CHK's dividend (2.45%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: CHK's dividend (2.45%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether CHK's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if CHK's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (1%), CHK's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CHK's dividends in 3 years are forecast to be thoroughly covered by earnings (1.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
0.3yrs
Average management tenure
CEO
Nick Dell'Osso (44 yo)
0.25
Tenure
US$3,995,689
Compensation
Mr. Domenic J. Dell'Osso, Jr., also known as Nick, has been President, Chief Executive Officer and Director of Chesapeake Energy Corporation since October 11, 2021. He had been the Chief Financial Officer...
CEO Compensation Analysis
Compensation vs Market: Nick's total compensation ($USD4.00M) is below average for companies of similar size in the US market ($USD6.40M).
Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: CHK's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.
Board Members
Experienced Board: CHK's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: CHK only recently listed within the past 12 months, with total shares outstanding growing by 1097.6% in the past year..
Top Shareholders
Company Information
Chesapeake Energy Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Chesapeake Energy Corporation
- Ticker: CHK
- Exchange: NasdaqGS
- Founded: 1989
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Implied Market Cap: US$8.375b
- Shares outstanding: 117.11m
- Website: https://www.chk.com
Number of Employees
Location
- Chesapeake Energy Corporation
- 6100 North Western Avenue
- Oklahoma City
- Oklahoma
- 73118-1044
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/16 23:06 |
| End of Day Share Price | 2022/01/14 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.