Chesapeake Energy (CHK, $2.81) Posts Higher-Than-Expected Q4 Production Numbers
Shares of Chesapeake Energy surged nearly 10% last Wednesday after the oil and gas company reported strong production outlook for the fourth-quarter.
CHK’s revised strategy to focus on oil production and to move away from gas finally paid off, after the Oklahoma-based oil producer said that it expects the total production to hover somewhere in-between 462,000 and 464,000 barrels of oil equivalent (BOE) per day for the December ending fourth-quarter. FactSet consensus expected the production to touch 448,000 BOE per day.
CHK further added that it expects oil production to range between 86,000 to 87,000 barrels (bbls) of oil per day, compared to FactSet consensus of 85,200 bbls per day. According to CHK’s Chief Executive Doug Lawler, divested Utica oil volumes have been completely compensated by oil volume growth in the Powder River Basin and Eagle Ford Shale in the last two months of the year.
Separately, CHK also announced that the company has been successful in reducing its total outstanding debt by roughly $1.8 billion since the end of 2017, and asset sales generated more than $2 billion in net proceeds during 2018. A majority of the asset sale proceeds have been utilized to settle the term loan and senior secured second lien debt.
CHK also added that in-line with the company’s strategy to reduce its capex investment and increase capital efficiency in 2019, it plans to reduce its rig count by 20% to an average of 14 rigs versus 18 rigs currently. Reduction in rig count is expected to improve capital efficiency by 15%-20% from 2018 as total net capital per rig line is likely to decrease.
Shares of CHK have surged almost 30% since touching its one-year low of $1.90 in mid-December.
Aroon Indicator for EXE shows an upward move is likely
EXE's Aroon Indicator triggered a bullish signal on April 11, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 227 similar instances where the Aroon Indicator showed a similar pattern. In of the 227 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on May 05, 2025. You may want to consider a long position or call options on EXE as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EXE just turned positive on April 28, 2025. Looking at past instances where EXE's MACD turned positive, the stock continued to rise in of 52 cases over the following month. The odds of a continued upward trend are .
EXE moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for EXE crossed bullishly above the 50-day moving average on April 25, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 14 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EXE advanced for three days, in of 275 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for EXE moved out of overbought territory on April 03, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EXE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EXE broke above its upper Bollinger Band on May 09, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EXE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.094) is normal, around the industry mean (4.436). P/E Ratio (5.304) is within average values for comparable stocks, (19.229). Projected Growth (PEG Ratio) (1.307) is also within normal values, averaging (4.890). Dividend Yield (0.032) settles around the average of (0.085) among similar stocks. P/S Ratio (1.650) is also within normal values, averaging (161.907).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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a developer of oil and natural gas properties
Industry OilGasProduction