Market Overview

Fundamental Analysis: Chesapeake Energy

This week we take a look at Chesapeake Energy(NYSE: CHK) starting today with an analysis of the company's fundamentals. Our analysis later this week will cover our assessment of its likely Corporate Actions, Dividend Quality, and Earnings Quality.

For details on how CapitalCube computes the Fundamental Analysis Score of a company read here. Our analysis is peer-based; we used the following peer set for analyzing Chesapeake: Anadarko Petroleum Corp.(APC), EOG Resources Inc.(EOG), Apache Corp.(APA), Devon Energy Corp.(DVN), Williams Companies Inc(WMB), Noble Energy Inc.(NBL), Hess Corp.(HES) and EQT Corp.(EQT).

If you are then you can change the default peer set (shown on the right) by either adding a new peer in the circled box or deleting any peers you don't want by simply removing the checked peers. When you re-run the analysis Chesapeake will be scored and analyzed with your new custom peer set.

Fundamental Analysis Fundamental Analysis Score Chesapeake Energy

 

  • Chesapeake Energy Corp. trades at a lower Price/Book multiple (0.9) than its peer median (1.8).

Stock price performance over the last month vs. last year charted with respect to peers for Chesapeake Energy Corp. (NYSE: <a class=

Drivers of Valuation: Operations or Expectations?

Valuation (P/B) = Operating Advantage (ROE) * Growth Expectations (P/E)

CHK-US has a challenged profile relative to peers.

Drivers of Valuation: Operations or Expectations? Operating Advantage or ROE% vs. Growth Advantage or P/E for Chesapeake Energy Corp. (NYSE: <a class=
CHK-US has moved to a relatively low net margin from a relatively high net margin profile at the recent year-end.
Net Margin% for Chesapeake Energy Corp. (NYSE: <a class=
Graph of Sales/Total Assets showing Peer Median (TTM) for Chesapeake Energy Corp. (NYSE: <a class=
Earnings Leverage Earnings Growth % vs. Revenue Growth % charted with respect to peers for Chesapeake Energy Corp. (NYSE: <a class=
Sustainability of Returns or 5 year average ROA% vs. Latest ROA% charted with respect to peers for Chesapeake Energy Corp. (NYSE: <a class=
Drivers of Margin or Gross Margin% vs. Pre Tax Margin % charted with respect to Peers for Chesapeake Energy Corp. (NYSE: <a class=
CHK-US has moved to a Commodity/High Cost from a Commodity/Low Cost profile at the recent year-end.
Drivers of Margin or Gross Margin% vs. Pre Tax Margin % charted with respect to Peers
Chart of Pre Tax Margin % showing Peer Median (TTM) for Chesapeake Energy Corp. (NYSE: <a class=
Growth Expectations or 3 Year Revenue Growth % vs. P/E charted with respect to peers for Chesapeake Energy Corp. (NYSE: <a class=
Capital Investment Strategy or ROIC % vs. Capital Growth % charted with respect to peers for 3 yr average for Chesapeake Energy Corp. (NYSE: <a class=
Leverage or EBIT/Interest Expense vs. Liquidity or Debt/Enterprise Value (%) charted with respect to peers for Chesapeake Energy Corp. (NYSE: <a class=
CHK-US has maintained its relatively low liquidity profile from the recent year-end.
Chart of Interest Coverage (x) showing Peer Median (TTM) for Chesapeake Energy Corp. (NYSE: <a class=
Chart of Debt Enterprise Value% showing Peer Median (TTM) for Chesapeake Energy Corp. (NYSE: <a class=
Chesapeake Energy Corp. (NYSE: CHK) explores, develops and produces oil and natural gas properties. Its principal activities include discovering and developing unconventional natural gas and oil fields onshore in the U.S. The company has also vertically integrated its operations and owns substantial marketing, midstream and oilfield services businesses directly and indirectly through its subsidiaries Chesapeake Energy Marketing, Inc., Chesapeake Midstream Development LP, Chesapeake Oilfield Services LLC, and Chesapeake Midstream Partners LP. Chesapeake Energy operates its business though the following segments: Exploration and Production; Natural Gas and Oil Marketing; Gathering and Compression; and Oilfield Services. The Exploration and Production segment is responsible for finding and producing natural gas and oil. The Marketing, Gathering and Compression segment is responsible for marketing, gathering and compression of natural gas and oil primarily from Chesapeake-operated wells. The Oilfield Services segment is responsible for contract drilling, oilfield trucking, oilfield rental, pressure pumping and other oilfield services operations for both Chesapeake-operated wells and wells operated by third parties. The company was founded by Aubrey K. McClendon and Tom L. Ward on May 18, 1989 and is headquartered in Oklahoma City, OK.

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