#1 - Chesapeake Energy (OTCMKTS:CHKAQ)
Chesapeake Energy (NYSE: CHK) - The decision to buy Chesapeake Energy really comes down to which direction you see oil and gas prices moving. The company took it on the chin during the last downturn and was saddled with almost $10 billion in debt. However, many analysts are projecting oil and gas prices to rise through 2019, and an increase would benefit a small player like CHK more than some of the major oil companies. Lending support to that argument, CHK’s stock has posted a 15% gain for 2018 as oil prices have risen to around $70. If those prices hit the $120 mark by the end of 2019 as some analysts predict, CHK could be in for a sizable bump in price.
The company also recently announced that they were selling off some assets to reduce their debt by about $2 billion and their second-quarter earnings report gave evidence that they have a viable plan in place to replace the profit they are losing from selling those assets.
In their last earnings report, results were mixed. Year-over-year earnings were down substantially with the company posting a loss of $40 million ($0.04/per share) compared to a profit of $470 million ($0.47/per share)the year before. And total revenue fell from $2.281 billion to $2.255 billion. However, their adjusted earnings per share of $0.15 came in ahead of estimates that called for $0.14. At this writing, the stock was trending just below their simple moving average (SMA) and if it finds support it could be ready to move past its high for the year which was hit in early July.
About Chesapeake Energy
Chesapeake Energy Corp. is an independent exploration and production company, which engages in acquisition, exploration and development of properties for the production of oil, natural gas and natural gas liquids from underground reservoirs. It focuses on projects located in Louisiana, Ohio, Oklahoma, Pennsylvania, Texas, and Wyoming.
Read More - Current Price
- $3.05
- Consensus Rating
- N/A
- Ratings Breakdown
- 0 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
