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CHK

Chesapeake EnergyNasdaqGS:CHK Stock Report

Market Cap

US$7.5b

7D

0.2%

1Y

n/a

Updated

30 Nov, 2021

Data

Company Financials +
CHK fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health3/6
Dividends2/6

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

ConocoPhillips

NYSE:COP

US$95.2b

EOG Resources

NYSE:EOG

US$51.7b

Pioneer Natural Resources

NYSE:PXD

US$44.8b

Devon Energy

NYSE:DVN

US$29.7b

Price History & Performance

Summary of all time highs, changes and price drops for Chesapeake Energy
Historical stock prices
Current Share PriceUS$61.37
52 Week HighUS$69.40
52 Week LowUS$40.00
Beta0
1 Month Change-3.72%
3 Month Change9.96%
1 Year Changen/a
3 Year Changen/a
5 Year Changen/a
Change since IPO36.41%

Recent News & Updates

Oct 11
A Look At The Fair Value Of Chesapeake Energy Corporation (NASDAQ:CHK)

A Look At The Fair Value Of Chesapeake Energy Corporation (NASDAQ:CHK)

Does the October share price for Chesapeake Energy Corporation ( NASDAQ:CHK ) reflect what it's really worth? Today, we...

Sep 20

Chesapeake Energy Remains On The Wagon While Doubling Down On Natural Gas

Quarterly results will be clouded with deferred maintenance and other reorganization issues. The latest acquisition will be more material than the quarterly results. Time will tell if the newfound emphasis on natural gas production is wise. Management is keeping the debt ratio low as it should after a bankruptcy experience. Paying a high ratio of distributable cash flow after bankruptcy may not be the best strategy for this company.

Aug 20

Chesapeake Energy: New Direction Has Some Holes In It

The natural gas production strategy may be too extreme. The variable dividend of 50% of distributable cash flow is probably too high. The company may miss some good acquisitions or shareholders will suffer more dilution because the cash is paid out. The information provided by management appears to show a misallocation of capital. The cost of a misallocated capital budget is future profitability.

Shareholder Returns

CHKUS Oil and GasUS Market
7D0.2%0.1%-0.9%
1Yn/a54.7%23.3%

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

Is CHK's price volatile compared to industry and market?
CHK volatility
CHK Average Weekly Movement6.2%
Oil and Gas Industry Average Movement7.2%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

FoundedEmployeesCEOWebsite
19891,300Nick Dell'Ossohttps://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

How do Chesapeake Energy's earnings and revenue compare to its market cap?
CHK fundamental statistics
Market CapUS$7.49b
Earnings (TTM)US$4.48b
Revenue (TTM)US$6.46b

1.6x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CHK income statement (TTM)
RevenueUS$6.46b
Cost of RevenueUS$3.35b
Gross ProfitUS$3.10b
Expenses-US$1.37b
EarningsUS$4.48b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)38.24
Gross Margin48.08%
Net Profit Margin69.36%
Debt/Equity Ratio41.4%

How did CHK perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

1%

Payout Ratio

Valuation

Is Chesapeake Energy undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHK ($61.37) is trading below our estimate of fair value ($137.91)

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 (1.6x) compared to the US Oil and Gas industry average (16x).

PE vs Market: CHK is good value based on its PE Ratio (1.6x) compared to the US market (17.1x).


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 (2.4x) compared to the US Oil and Gas industry average (2x).


Future Growth

How is Chesapeake Energy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-43.3%

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 (-43.3% per year).

Earnings vs Market: CHK's earnings are forecast to decline over the next 3 years (-43.3% per year).

High Growth Earnings: CHK's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CHK's revenue is expected to decline over the next 3 years (-11.7% per year).

High Growth Revenue: CHK's revenue is forecast to decline over the next 3 years (-11.7% 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 (8.3%).


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?

2.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CHK's dividend (2.85%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: CHK's dividend (2.85%) is low compared to the top 25% of dividend payers in the US market (3.57%).


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 is not forecast to pay a dividend in 3 years.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.08yrs

Average management tenure


CEO

Nick Dell'Osso (44 yo)

0.083

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 ($USD4.00M) is below average for companies of similar size in the US market ($USD6.23M).

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 ( 0.1 years average tenure), which suggests a new team.


Board Members

Experienced Board: CHK's board of directors are not considered experienced ( 0.7 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
  • Market Cap: US$7.485b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:13
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.