Chesapeake Energy (CHK, $3.52) Looks to Build a Proverbial "Monopoly"
Undergoing a whole-scale transition under CEO Doug Lawler, Chesapeake Energy surprised the investor community by reporting third quarter earnings a day early and also with the announcement of the acquisition of WildHorse Resource Development Corp (WRD, $21.29), in a deal valued at ~$4 billion.
Reporting a 58% y-o-y increase in its adjusted EPS at $0.19 cents a share, Chesapeake registered only a 12% y-o-y decrease in its production costs. The average daily oil production of the company saw a 13% y-o-y increase while the cashflow from operations stood at $504 million, up 52% on a y-o-y basis. However, at the net level it’s still a cash out-flow. Despite all these positives and accolades, shares of the company plunged more than 12% on Wednesday’s trading as investors seemed to weigh on on the value of the WildHorse deal.
One criticism of the deal is that Chesapeake adds more debt worth ~ $980 million in its book. But on the positive side, it helps the company create a monopoly of sorts in the Eagle Ford basin, along with helping the acceleration of its transformation and deleveraging process.
EXE sees MACD Histogram just turned negative
EXE saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 10, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 55 instances where the indicator turned negative. In of the 55 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for EXE moved out of overbought territory on October 09, 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 42 similar instances where the indicator moved out of overbought territory. In of the 42 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on October 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on EXE as a result. In of 88 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
EXE moved below its 50-day moving average on October 16, 2025 date and that indicates a change from an upward trend to a downward trend.
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 .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for EXE crossed bullishly above the 50-day moving average on September 24, 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 292 cases, the price rose further within the following month. The odds of a continued upward trend are .
EXE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 255 cases where EXE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 74, 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 (1.309) is normal, around the industry mean (11.315). P/E Ratio (62.840) is within average values for comparable stocks, (23.046). Projected Growth (PEG Ratio) (1.480) is also within normal values, averaging (4.114). Dividend Yield (0.032) settles around the average of (0.073) among similar stocks. P/S Ratio (2.449) is also within normal values, averaging (129.686).
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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a developer of oil and natural gas properties
Industry OilGasProduction
Advertisement