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.
Undervalued with acceptable track record.
Share Price & News
How has Chesapeake Energy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CHK's share price has been volatile over the past 3 months.
7 Day Return
US Oil and Gas
1 Year Return
US Oil and Gas
Return vs Industry: CHK underperformed the US Oil and Gas industry which returned -18.9% over the past year.
Return vs Market: CHK underperformed the US Market which returned 18% over the past year.
Price Volatility Vs. Market
How volatile is Chesapeake Energy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StDoes Chesapeake Energy Corporation's (NYSE:CHK) CEO Salary Compare Well With Others?
1 month ago | Simply Wall StDoes Chesapeake Energy (NYSE:CHK) Have A Healthy Balance Sheet?
1 month ago | Simply Wall StDoes Chesapeake Energy's (NYSE:CHK) Statutory Profit Adequately Reflect Its Underlying Profit?
Is Chesapeake Energy undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CHK ($0.45) is trading below our estimate of fair value ($0.93)
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 (0.5x) compared to the Oil and Gas industry average (10x).
PE vs Market: CHK is good value based on its PE Ratio (0.5x) compared to the US market (18.2x).
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 good value based on its PB Ratio (0.3x) compared to the US Oil and Gas industry average (0.8x).
How is Chesapeake Energy forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
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 (-20% per year).
Earnings vs Market: CHK's earnings are forecast to decline over the next 3 years (-20% 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 (-6% per year).
High Growth Revenue: CHK's revenue is forecast to decline over the next 3 years (-6% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CHK is forecast to be unprofitable in 3 years.
How has Chesapeake Energy performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHK has high quality 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 43.9% 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 (-13.3%).
Return on Equity
High ROE: Whilst CHK's Return on Equity (26.82%) is high, this metric is skewed due to their high level of debt.
Return on Assets
Return on Capital Employed
How is Chesapeake Energy's financial position?
Financial Position Analysis
Short Term Liabilities: CHK's short term assets ($1.4B) do not cover its short term liabilities ($2.3B).
Long Term Liabilities: CHK's short term assets ($1.4B) do not cover its long term liabilities ($9.5B).
Debt to Equity History and Analysis
Debt Level: CHK's debt to equity ratio (197.3%) is considered high.
Reducing Debt: CHK's debt to equity ratio has increased from 65.5% to 197.3% over the past 5 years.
Inventory Level: CHK has a high level of physical assets or inventory.
Debt Coverage by Assets: CHK's debt is not covered by short term assets (assets are 0.2x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: CHK is profitable, therefore cash runway is not a concern.
Forecast Cash Runway: CHK is profitable, therefore cash runway is not a concern.
What is Chesapeake Energy's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate CHK's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate CHK's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CHK's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CHK's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: CHK is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CHK's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Doug Lawler (52yo)
Mr. Robert Douglas Lawler, also known as Doug, has been the Chief Executive Officer and President of Chesapeake Energy Corporation, the Sole Manager of Chesapeake Operating, L.L.C, Sole Manager of Chesapea ...
CEO Compensation Analysis
Compensation vs Market: Doug's total compensation ($USD22.75M) is above average for companies of similar size in the US market ($USD2.50M).
Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.
|Executive VP & CFO||9.3yrs||US$7.54m||0.11% $987.6k|
|Executive VP||7.3yrs||US$6.43m||0.083% $717.1k|
|Executive Vice President of Exploration & Production||3.5yrs||US$6.77m||0.069% $599.9k|
|Senior VP & Chief Accounting Officer||2.5yrs||no data||0.029% $255.2k|
|Vice President of Investor Relations & Communications||5.5yrs||no data||no data|
|Vice President of Human Resources||0yrs||no data||no data|
Experienced Management: CHK's management team is seasoned and experienced (6.1 years average tenure).
|Independent Director||13.1yrs||US$365.00k||0.025% $219.1k|
|Independent Director||3.2yrs||US$350.00k||0.011% $94.4k|
|Independent Director||7.1yrs||US$375.00k||0.059% $509.6k|
|Non-Executive Chairman||4.3yrs||US$630.00k||0.067% $581.4k|
|Independent Director||2.4yrs||US$350.00k||0.014% $120.0k|
|Independent Director||3.3yrs||US$350.00k||0.012% $106.3k|
|Independent Director||1.5yrs||US$131.07k||0.0065% $56.3k|
Experienced Board: CHK's board of directors are considered experienced (3.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CHK insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 54.9%.
Chesapeake Energy Corporation's company bio, employee growth, exchange listings and data sources
- Name: Chesapeake Energy Corporation
- Ticker: CHK
- Exchange: NYSE
- Founded: 1989
- Industry: Oil and Gas Exploration and Production
- Sector: Energy
- Market Cap: US$868.220m
- Shares outstanding: 1.94b
- Website: https://www.chk.com
Number of Employees
- Chesapeake Energy Corporation
- 6100 North Western Avenue
- Oklahoma City
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|CHK||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Feb 1993|
|CS1||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Feb 1993|
|CS1||XTRA (XETRA Trading Platform)||Yes||Common Stock||DE||EUR||Feb 1993|
|CHK *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Feb 1993|
|0HWL||LSE (London Stock Exchange)||Yes||Common Stock||GB||USD||Feb 1993|
|CHKD.H||OTCUS (Other "Grey Market" OTC)||PFD CONV 144A||US||USD||Nov 2005|
|CHK.PRD||NYSE (New York Stock Exchange)||PFD CONV||US||USD||Nov 2005|
|CHKD.G||OTCPK (Pink Sheets LLC)||5% CM CNV PFD||US||USD||Apr 2006|
|CHKW.Z||OTCUS (Other "Grey Market" OTC)||PFD CONV 5.75%||US||USD||Jun 2011|
|CHKD.P||OTCPK (Pink Sheets LLC)||PFD 5.75||US||USD||Jul 2011|
|CHKV.Z||OTCUS (Other "Grey Market" OTC)||PFD CV-A||US||USD||Apr 2012|
|CHKE34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EA REPR 1 COM SHS USD0.01||BR||BRL||Aug 2016|
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; Powder River Basin in Wyoming; and Mid-Continent in Anadarko Basin of northwestern Oklahoma. As of December 31, 2018, it owned interests in approximately 13,200 oil and natural gas wells; and had estimated proved reserves of 1,448 one million barrels of oil equivalent. Chesapeake Energy Corporation was founded in 1989 and is headquartered in Oklahoma City, Oklahoma.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/23 00:30|
|End of Day Share Price||2020/02/21 00:00|
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.