Chesapeake Energy shares surged this week after the company reported estimate-beating Q4 earnings and revenue expectations. Analysts attribute higher natural gas prices for this stunning growth.
CHK’s total Q4 revenue rose to $3.07 billion, a 22% increase versus analyst expectations of $2.28 billion. Oil, natural gas and natural gas equivalent revenue jumped 37% to $1.73 billion versus a consensus estimate of $1.1 billion.
Based on recent trend in oil and gas prices, Chesapeake says its full-year adjusted EBITDA generated the highest per barrel of oil equivalent of $12.81 since 2014, and expects EBITDA generated per barrel of oil equivalent to rise by 12%-15% in 2019.
CHK’s Q4 production stood at 464K boe/day after falling by 7% on a y-o-y basis, while production expenses increased 15% to $2.87/boe. CHK forecasts 2019 oil production to rise ~32% to 116K-122K bbl/day while capex is expected to remain roughly flat at $2.3B-$2.5 billion and cash flow is seen coming in really strong.
CHK's Aroon Indicator triggered a bullish signal on May 01, 2024. 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 219 similar instances where the Aroon Indicator showed a similar pattern. In of the 219 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
The 50-day moving average for CHK moved above the 200-day moving average on April 05, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CHK advanced for three days, in of 241 cases, the price rose further within the following month. The odds of a continued upward trend are .
The 10-day RSI Indicator for CHK moved out of overbought territory on April 30, 2024. 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 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 57 cases where CHK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 01, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on CHK as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for CHK turned negative on May 01, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CHK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
CHK broke above its upper Bollinger Band on April 29, 2024. 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 76, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (5.854). P/E Ratio (5.304) is within average values for comparable stocks, (18.621). Projected Growth (PEG Ratio) (1.307) is also within normal values, averaging (5.068). Dividend Yield (0.032) settles around the average of (0.083) among similar stocks. P/S Ratio (1.650) is also within normal values, averaging (148.486).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CHK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of oil and natural gas properties
Industry OilGasProduction