Chesapeake Energy Stock (NASDAQ:CHK), Trade Ideas

Chesapeake Energy

Chesapeake Energy Corp is a us-based exploration and production company. It is engaged in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs. Geographically, the company focuses on areas of Marcellus, Northern Appalachian Basin in Pennsylvania; Haynesville, Northwestern Louisiana (Gulf Coast); and Eagle Ford, South Texas.

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Scotiabank analyst upgraded EQT, downgraded RRC &amp; SWN due to revised forecasts for natural gas industry. Expects volatility &amp; LNG export growth.

Analyst Sees Volatile Future for North American Gas Prices, Upgrades Most Impacted Stock

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The U.S. Energy Department&#39;s weekly inventory release showed that natural gas supplies decreased less than expected. The bearish inventory numbers notwithstanding, futures settled with a slight gain week over week on signs of production pullback.


What Did the Latest Inventory Data Do to Natural Gas Prices?

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Chesapeake Energy&#39;s merger with Southwestern Energy delayed as FTC requests more info. Expected to be completed in second half of 2024.

Hitch in the Haymaker: FTC Request Delays Chesapeake-Southwestern Merger

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<p>Scotiabank  analyst Cameron Bean   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Sector Perform and raises the price target from $92 to $110.</p>


Scotiabank Maintains Sector Perform on Chesapeake Energy, Raises Price Target to $110

<p><strong>Scotiabank</strong>&nbsp;analyst Cameron Bean changed the rating for a few North American Natural Gas companies following their revised forecasts about commodity price deck and industry outlook.</p>
<p>The analyst continues to expect congestion and low prices to prevail into the summer but sees green shoots on the horizon, with weaker U.S. production volumes in H2 FY24 and the commissioning of new North American LNG export facilities in late 2024 and 2025.</p>
<p>Bean continues to project a price of $4.00/mmBtu but expects significant price volatility as North America adds considerable new LNG export capacity over the next three to five years.&nbsp;</p>
<p>Also, the analyst expects a rougher ride for AECO prices, with potential carnage during the summer, but anticipates the startup of LNG Canada, creating significant slack in the system in 2025 and 2026.&nbsp;</p>
<p>Consequently, the analyst upgraded&nbsp;<strong>EQT Corporation&nbsp;</strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EQT#NYSE">EQT</a>) to<strong>&nbsp;</strong>Sector Outperform (from Sector Perform) and raised the&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/EQT/analyst-ratings" rel="noreferrer noopener">price target to $52 (from $40)</a>.</p>
<p>The analyst assumes EQT's acquisition of&nbsp;<strong>Equitrans Midstream Corporation&nbsp;</strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ETRN#NYSE">ETRN</a>)<strong>&nbsp;</strong>will close in mid-Q4/24 and expects it to be a&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/03/37583705/why-eqt-equitrans-midstream-shares-are-moving-premarket-monday" rel="noreferrer noopener">game changer for the company</a>.</p>
<p>Bean projects expected material cost structure improvements and enhanced operational control and flexibility as key wins for EQT.</p>
<p>On the other hand, Bean downgraded&nbsp;<strong>Range Resources Corporation&nbsp;</strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RRC#NYSE">RRC</a>) and&nbsp;<strong>Southwestern Energy Company&nbsp;</strong>(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWN#NYSE">SWN</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/RRC/analyst-ratings" rel="noreferrer noopener">to<strong>&nbsp;</strong>Sector Perform (from Sector Outperform)</a>&nbsp;and raised the price target to $45 (from $40) and $9.5 (from $9), respectively.</p>
<p><a target="_blank" href="https://www.benzinga.com/quote/SWN/analyst-ratings" rel="noreferrer noopener">For SWN</a>, the analyst sees a relatively flat or sustaining production profile in 2024 and expects a mid-Q4/24 closing date for the&nbsp;<strong>Chesapeake Energy Corporation&nbsp;</strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36591781/why-southwestern-energy-shares-are-down-today" rel="noreferrer noopener">and Southwestern<strong>&nbsp;</strong>merger</a>.</p>
<p>The analysts project the combined company to offer dominant exposure to Haynesville, potentially adding material international natural gas price exposure to its portfolio over the next several years.</p>
<p><strong>Price Action</strong>: EQT shares are down 1.5% at $37.15, RRC shares by 1.54% at $35.77 and SWN by 2.06% at $7.36 on the last check Thursday.</p>
<p><em>Photo via Shutterstock</em></p>


<p>Mizuho  analyst Nitin Kumar   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Buy and maintains $100 price target.</p>


Mizuho Maintains Buy on Chesapeake Energy, Maintains $100 Price Target

<p>UBS  analyst Josh Silverstein   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Neutral and raises the price target from $92 to $94.</p>


UBS Maintains Neutral on Chesapeake Energy, Raises Price Target to $94

<p>Barclays  analyst Betty Jiang   initiates coverage on Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Equal-Weight rating and announces Price Target of $102.</p>


Initiation

Barclays Initiates Coverage On Chesapeake Energy with Equal-Weight Rating, Announces Price Target of $102

<p>Jefferies  analyst Lloyd Byrne   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Buy and lowers the price target from $118 to $115.</p>


Jefferies Maintains Buy on Chesapeake Energy, Lowers Price Target to $115

<p>Benchmark  analyst Subash Chandra   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Buy and lowers the price target from $107 to $93.</p>


Benchmark Maintains Buy on Chesapeake Energy, Lowers Price Target to $93

<p>The U.S. Energy Department&#39;s weekly inventory release showed that natural gas supplies decreased less than expected. The bearish inventory numbers notwithstanding, futures settled with a slight gain week over week on signs of production pullback.<br />
Despite this spike, the market hasn&#39;t been kind to natural gas, with the commodity recently hitting nearly four-year lows due to worries about record output and concerns about a growing glut. At this time, we advise investors to focus on stocks like <strong>Coterra Energy</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ctra#NYSE">CTRA</a>) and <strong>Cheniere Energy</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lng#NYSE">LNG</a>).</p>
<h3>EIA Reports a Withdrawal Smaller Than Market Expectations</h3>
<p>Stockpiles held in underground storage in the lower 48 states fell 37 billion cubic feet (Bcf) for the week ended Mar 29, below the guidance of a 39 Bcf withdrawal, per a survey conducted by S&amp;P Global Commodity Insights. The decrease compared with the five-year (2019-2023) average net shrinkage of 1 Bcf and last year&#39;s decline of 29 Bcf for the reported week.<br />
The latest draw puts total natural gas stocks at 2,259 Bcf, which is 422 Bcf (23%) above the 2023 level and 633 Bcf (38.9%) higher than the five-year average.<br />
The total supply of natural gas averaged 105.6 Bcf per day, down 0.2 Bcf per day on a weekly basis due to a slump in dry production, partly offset by higher shipments from Canada.<br />
Meanwhile, daily consumption fell to 105.2 Bcf from 114 Bcf in the previous week, mainly reflecting a sizeable drop in residential/commercial usage triggered by reduced space-heating demand in warmer weather.</p>
<h3>Natural Gas Prices Still Finish Higher</h3>
<p>Natural gas prices trended northward last week despite the lower-than-expected inventory decrease. Futures for May delivery ended Friday at $1.785 on the New York Mercantile Exchange, up some 1.3% from the previous week&#39;s closing. The increase in natural gas realization is the result of a pullback in supply. Nevertheless, the fuel has declined almost 30% this year after tumbling 44% in 2023.<br />
Investors should know that natural gas realization has been under pressure from strong production, elevated stockpiles and tepid weather-related demand. It&#39;s worth mentioning that the current inventory levels are well above the year-ago figure and the five-year average. The bearish sentiment surrounding the commodity even prompted shale producers <strong>Chesapeake Energy</strong> (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/chk#NASDAQ">CHK</a>) and <strong>EQT Corporation</strong> (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eqt#NYSE">EQT</a>) to hit the brakes on new drilling.<br />
Chesapeake announced a reduction in its drilling rigs so as to lower volume. The company has decided to cut this year&#39;s gas production expectations by around 20%. Chesapeake&#39;s plans rippled through the market, with Appalachian Basin-focused EQT following on. The explorer and producer of natural gas said that it will lower its daily output by 1 Bcf to combat the supply glut in the U.S. market. According to EQT, the revised plan will likely reduce net production by 30-40 Bcf. While these production cut announcements temporarily sent natural gas prices higher, they have failed to galvanize the market.<br />
As is the norm with natural gas, changes in temperature and weather can lead to price swings. With low heating demand this winter and forecasts turning milder, usage of the commodity to generate electricity has taken a hit.<br />
Having said that, there are signs of curtailment in U.S. production. According to energy services provider Baker Hughes, the U.S. natural gas rig count &mdash; a pointer to where production is headed &mdash; is down around 30% from last year to its lowest since January 2022. Industry observers believe this could set the stage for a pullback in near-term drilling and supplies.<br />
Meanwhile, a stable demand catalyst in the form of continued strong LNG feedgas deliveries is supporting natural gas. As a matter of fact, LNG shipments for export from the United States have been elevated for months, reaching record levels due to environmental reasons and Europe&#39;s endeavor to move away from its dependence on Russian natural gas supplies due to the war in Ukraine.<br />
At the same time, the protracted downtime associated with the testing and repairs at the Freeport LNG export plant in Texas has drowned out some of the positives as of now. The Quintana, TX facility &mdash; responsible for around 15% of U.S. liquefaction capacity &mdash; is facing outages at two of its three liquefaction trains until May. Consequently, some of the LNG cargoes due for export are likely to have been diverted to the domestic market despite huge demand abroad.</p>
<h3>Final Thoughts</h3>
<p>The upshot of all these factors &mdash; the natural gas market &mdash; remains an oversupplied one. As mentioned above, it endured a torrid year in 2023, briefly breaking below the $2 threshold for the first time since 2020. The situation is not much different in 2024, with the fuel reaching a multi-year low near $1.48 in late March and struggling to cross the psychological mark of $2.<br />
Based on several factors, the space is currently quite unpredictable and spooked by sudden changes in weather and production patterns. As such, investors are clueless about what to do. As of now, the lingering uncertainty over the fuel means that they should preferably hold on to fundamentally strong stocks like Coterra Energy and Cheniere Energy.<br />
<strong>Coterra Energy:</strong> It is an independent upstream operator primarily engaged in the exploration, development and production of natural gas. Headquartered in Houston, TX, the firm owns some 183,000 net acres in the gas-producing Marcellus Shale of the Appalachian Basin. This Zacks Rank #3 (Hold) company churned out an average of 2,262.7 million cubic feet on a daily basis from these assets in 2023.<br />
Coterra beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed in the other, the average being 9.3%. Valued at around $21.3 billion, CTRA has risen 10.4% in a year.<br />
<strong>Cheniere Energy:</strong> Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy enjoys a distinct competitive advantage.<br />
Cheniere Energy beat the Zacks Consensus Estimate for earnings in three of the last four quarters and missed in the other. This #3 Ranked natural gas exporter has a trailing four-quarter earnings surprise of roughly 64.7%, on average. LNG shares have moved up 2.1% in a year.</p>
<p><a href="https://www.zacks.com/stock/news/2251801/what-did-the-latest-inventory-data-do-to-natural-gas-prices?cid=CS-BENZ-FT-analyst_blog|industry_focus-2251801">To read this article on Zacks.com click here.</a></p>


<p>Truist Securities  analyst Neal Dingmann   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Buy and lowers the price target from $119 to $112.</p>


Truist Securities Maintains Buy on Chesapeake Energy, Lowers Price Target to $112

<p><strong>Chesapeake Energy Corporation&nbsp;</strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) disclosed that its merger with&nbsp;<strong>Southwestern Energy Company</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SWN#NYSE">SWN</a>) is expected be delayed as the FTC requested additional information and documentary materials from both&nbsp;<a target="_blank" href="https://app.quotemedia.com/data/downloadFiling?webmasterId=101533&amp;ref=318219359&amp;type=PDF&amp;symbol=CHK&amp;cdn=7522e3bd074a83a74031b4ac5e509362&amp;companyName=Chesapeake+Energy+Corporation&amp;formType=8-K&amp;dateFiled=2024-04-05" rel="noreferrer noopener">companies</a>.</p>
<p>Consequently, Chesapeake and Southwestern now expects the merger to be completed in the second half of 2024. Earlier, the companies expected the deal to close in the second quarter of 2024.</p>
<p><strong><em>Also Read</em></strong><em>:&nbsp;</em><a target="_blank" href="https://www.benzinga.com/24/04/38097984/drilling-deep-analyst-outlines-chesapeake-merger-synergies-delays-due-to-regulatory-risks" rel="noreferrer noopener"><em>Drilling Deep: Analyst Outlines Chesapeake Merger Synergies, Delays Due To Regulatory Risks</em></a></p>
<p>The issuance of the second request extends the waiting period imposed by the HSR Act until 30 days after the companies have substantially complied with the Second Request, unless that period is extended voluntarily by the parties or terminated sooner by the FTC.&nbsp;</p>
<p>In January 2024, both companies inked a merger deal through an all-stock transaction valued at $7.4 billion, or $6.69 per share, based on Chesapeake&#8217;s closing price&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36591781/why-southwestern-energy-shares-are-down-today" rel="noreferrer noopener">on January 10, 2024</a>.</p>
<p>At this exchange ratio and the respective share prices on January 10, 2024, the combined company would have an enterprise value<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36521132/southwestern-energy-and-chesapeake-energy-near-17b-merger-report" rel="noreferrer noopener">&nbsp;of around $24 billion</a>.&nbsp;</p>
<p><strong><em>Related</em></strong><em>:&nbsp;</em><a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36617282/chesapeake-energys-strategic-merger-with-southwestern-energy-wins-analyst-endorseme" rel="noreferrer noopener"><em>Chesapeake Energy&#8217;s Strategic Merger with Southwestern Energy Wins Analyst Endorsement: Upgraded Ratings and Anticipated Market Dominance</em></a></p>
<p>Investors can gain exposure to the stock via&nbsp;<strong>Invesco Energy Exploration &amp; Production ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>) and&nbsp;<strong>Texas Capital Funds Trust Texas Capital Texas Oil Index ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>).&nbsp;</p>
<p><strong>Price Action</strong>: CHK shares are down 0.10% at $89.23 on the last check Friday.</p>
<p><em>Photo via Shutterstock</em></p>


Chesapeake, Southwestern Received Second FTC Request, Extending Merger Review; Now Expected Merger Will Be Completed In H2 2023

<p><strong>Keybanc Capital Market&nbsp;</strong>analyst<strong>&nbsp;</strong>Tim Rezvan<strong>&nbsp;</strong>initiated coverage on&nbsp;<strong>Chesapeake Energy Corporation&nbsp;</strong>(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>)&nbsp;<a target="_blank" href="https://www.benzinga.com/quote/CHK/analyst-ratings" rel="noreferrer noopener">at Sector Weight rating</a>.</p>
<p>The rating reflects the near/medium-term outlook for natural gas. The analyst says management is acting prudently by curtailing production amid weak prices.&nbsp;</p>
<p>The analyst writes that significant synergies can be extracted from the Southwestern merger and believes management is proving to&nbsp;be a first-mover with its push to gain exposure to international natural gas benchmarks for 15%-20% of its marketed gas.&nbsp;</p>
<p><em>Also Read: </em><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37244616/natural-gas-price-rallies-after-chesapeake-energy-lowers-output" target="_blank" rel="noreferrer noopener"><em>Natural Gas Price Rallies After Chesapeake Energy Lowers Output</em></a></p>
<p>However, the analyst sees legitimate regulatory risks related to the&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/01/36591781/why-southwestern-energy-shares-are-down-today" rel="noreferrer noopener">Southwestern merger</a>.&nbsp;</p>
<p>Also, Rezvan is concerned about degradation trends in the Marcellus and the Haynesville assets.</p>
<p>The analyst says the continuing delays on LNG export projects, L48 volume growth, and higher gas volumes from mature&nbsp;oil shale basins create less certainty that prices are expected to reset higher as LNG exports double to 25+ Bcf/d, possibly by 2028.</p>
<p>Overall, the analyst estimates EBITDA of $3.180 billion (26% above cons.) for 2024 and $5.182 billion ( 6% above street view) for 2025.</p>
<p>Investors can gain exposure to the stock via&nbsp;<strong>Invesco Energy Exploration &amp; Production ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PXE#NYSE">PXE</a>) and&nbsp;<strong>Texas Capital Funds Trust Texas Capital Texas Oil Index ETF</strong>&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/OILT#NYSE">OILT</a>).</p>
<p><strong>Price Action</strong>: CHK shares are down 0.34% at $89.99 on the last check Thursday.</p>
<p><strong><em>Related</em></strong><em>: </em><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/01/36617282/chesapeake-energys-strategic-merger-with-southwestern-energy-wins-analyst-endorseme" target="_blank" rel="noreferrer noopener"><em>Chesapeake Energy&#8217;s Strategic Merger with Southwestern Energy Wins Analyst Endorsement: Upgraded Ratings and Anticipated Market Dominance</em></a></p>
<p><em>Image: Shutterstock</em></p>


Drilling Deep: Analyst Outlines Chesapeake Merger Synergies, Delays Due To Regulatory Risks

<p>During the last three months, 5 analysts shared their evaluations of Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>), revealing diverse outlooks from bullish to bearish.</p>
<p>In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $96.8, with a high estimate of $104.00 and a low estimate of $92.00. Surpassing the previous average price target of $95.00, the current average has increased by 1.89%.</p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1712235650_0.png" alt="price target chart" /></p>
<h2>Breaking Down Analyst Ratings: A Detailed Examination</h2>
<p>A clear picture of Chesapeake Energy's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Buy</td>
<td>$100.00</td>
<td>$104.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$92.00</td>
<td>$86.00</td>
</tr>
<tr>
<td>Subash Chandra</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$93.00</td>
<td>$107.00</td>
</tr>
<tr>
<td>Paul Diamond</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$95.00</td>
<td>$82.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$104.00</td>
<td>$96.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chesapeake Energy. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li><strong>Rating:</strong> Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Chesapeake Energy compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts provide insights into price targets, offering estimates for the future value of Chesapeake Energy's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>For valuable insights into Chesapeake Energy's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/CHK/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Chesapeake Energy analyst ratings.</strong></a></p>
<h2>Unveiling the Story Behind Chesapeake Energy</h2>
<p>Chesapeake Energy Corp is a us-based exploration and production company. It is engaged in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs. Geographically, the company focuses on areas of Marcellus, Northern Appalachian Basin in Pennsylvania; Haynesville, Northwestern Louisiana (Gulf Coast); and Eagle Ford, South Texas.</p>
<h3>Financial Milestones: Chesapeake Energy's Journey</h3>
<p><strong>Market Capitalization:</strong> Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.</p>
<p><strong>Revenue Growth:</strong> Chesapeake Energy's revenue growth over a period of 3 months has faced challenges. As of 31 December, 2023, the company experienced a revenue decline of approximately <strong>-56.13%</strong>. This indicates a decrease in the company's top-line earnings. When compared to others in the Energy sector, the company faces challenges, achieving a growth rate lower than the average among peers.</p>
<p><strong>Net Margin:</strong> Chesapeake Energy's net margin excels beyond industry benchmarks, reaching <strong>31.45%</strong>. This signifies efficient cost management and strong financial health.</p>
<p><strong>Return on Equity (ROE):</strong> Chesapeake Energy's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of <strong>5.42%,</strong> the company may face hurdles in generating optimal returns for shareholders.</p>
<p><strong>Return on Assets (ROA):</strong> Chesapeake Energy's ROA stands out, surpassing industry averages. With an impressive ROA of <strong>3.98%</strong>, the company demonstrates effective utilization of assets and strong financial performance.</p>
<p><strong>Debt Management:</strong> The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at <strong>0.2</strong>.</p>
<h2>Analyst Ratings: Simplified</h2>
<p>Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.</p>
<p>Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Demystifying Chesapeake Energy: Insights From 5 Analyst Reviews

<p>Keybanc  analyst Tim Rezvan   initiates coverage on Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Sector Weight rating.</p>


Keybanc Initiates Coverage On Chesapeake Energy with Sector Weight Rating

<p>During the last three months, 8 analysts shared their evaluations of Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>), revealing diverse outlooks from bullish to bearish.</p>
<p>The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.</p>
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;"><strong>Bullish</strong></th>
<th style="text-align: right;"><strong>Somewhat Bullish</strong></th>
<th style="text-align: right;"><strong>Indifferent</strong></th>
<th style="text-align: right;"><strong>Somewhat Bearish</strong></th>
<th style="text-align: right;"><strong>Bearish</strong></th>
</tr>
</thead>
<tbody>
<tr>
<td><strong>Total Ratings</strong></td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">4</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>Last 30D</strong></td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>1M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>2M Ago</strong></td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td><strong>3M Ago</strong></td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
<p>Analysts have recently evaluated Chesapeake Energy and provided 12-month price targets. The average target is $93.5, accompanied by a high estimate of $104.00 and a low estimate of $82.00. Highlighting a 2.46% decrease, the current average has fallen from the previous average price target of $95.86. </p>
<p><img src="https://www.benzinga.com/files/images/story/2024/1709730084_0.png" alt="price target chart" /></p>
<h2>Deciphering Analyst Ratings: An In-Depth Analysis</h2>
<p>A clear picture of Chesapeake Energy's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.</p>
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Lowers</td>
<td>Buy</td>
<td>$100.00</td>
<td>$104.00</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Raises</td>
<td>Neutral</td>
<td>$92.00</td>
<td>$86.00</td>
</tr>
<tr>
<td>Subash Chandra</td>
<td>Benchmark</td>
<td>Lowers</td>
<td>Buy</td>
<td>$93.00</td>
<td>$107.00</td>
</tr>
<tr>
<td>Paul Diamond</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$95.00</td>
<td>$82.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Raises</td>
<td>Buy</td>
<td>$104.00</td>
<td>$96.00</td>
</tr>
<tr>
<td>Nitin Kumar</td>
<td>Mizuho</td>
<td>Announces</td>
<td>Neutral</td>
<td>$96.00</td>
<td>-</td>
</tr>
<tr>
<td>Josh Silverstein</td>
<td>UBS</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$86.00</td>
<td>$106.00</td>
</tr>
<tr>
<td>Paul Diamond</td>
<td>Citigroup</td>
<td>Lowers</td>
<td>Neutral</td>
<td>$82.00</td>
<td>$90.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li><strong>Action Taken:</strong> Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Chesapeake Energy. This information provides a snapshot of how analysts perceive the current state of the company.</li>
<li><strong>Rating:</strong> Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Chesapeake Energy compared to the broader market.</li>
<li><strong>Price Targets:</strong> Analysts gauge the dynamics of price targets, providing estimates for the future value of Chesapeake Energy's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
<p>Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Chesapeake Energy's market standing. Stay informed and make data-driven decisions with our Ratings Table.</p>
<p><a href="https://www.benzinga.com/quote/CHK/analyst-ratings?utm_source=Benzinga Insights"><strong>Stay up to date on Chesapeake Energy analyst ratings.</strong></a></p>
<h2>All You Need to Know About Chesapeake Energy</h2>
<p>Chesapeake Energy Corp is a us-based exploration and production company. It is engaged in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs. Geographically, the company focuses on areas of Marcellus, Northern Appalachian Basin in Pennsylvania; Haynesville, Northwestern Louisiana (Gulf Coast); and Eagle Ford, South Texas.</p>
<h3>Understanding the Numbers: Chesapeake Energy's Finances</h3>
<p><strong>Market Capitalization:</strong> With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.</p>
<p><strong>Decline in Revenue:</strong> Over the 3 months period, Chesapeake Energy faced challenges, resulting in a decline of approximately <strong>-56.13%</strong> in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Energy sector.</p>
<p><strong>Net Margin:</strong> Chesapeake Energy's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>31.45%</strong> net margin, the company effectively manages costs and achieves strong profitability.</p>
<p><strong>Return on Equity (ROE):</strong> Chesapeake Energy's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of <strong>5.42%,</strong> the company may encounter challenges in delivering satisfactory returns for shareholders.</p>
<p><strong>Return on Assets (ROA):</strong> Chesapeake Energy's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive <strong>3.98%</strong> ROA, the company effectively utilizes its assets for optimal returns.</p>
<p><strong>Debt Management:</strong> Chesapeake Energy's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of <strong>0.2</strong>.</p>
<h2>Analyst Ratings: Simplified</h2>
<p>Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.</p>
<p>Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.</p>
<p>This article was generated by Benzinga's automated content engine and reviewed by an editor.</p>


Analyst Scoreboard: 8 Ratings For Chesapeake Energy

<p>Mizuho  analyst Nitin Kumar   maintains Chesapeake Energy (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) with a Buy and lowers the price target from $104 to $100.</p>


Mizuho Maintains Buy on Chesapeake Energy, Lowers Price Target to $100

<p>Monday marks the last chance for investors to receive the next  dividend payout from <strong>Chesapeake Energy</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>). </p>
<h3>What's Happening</h3>
<p>The company announced on Tuesday that it would pay shareholders a quarterly dividend of 8.5 cents per share. On Tuesday, Chesapeake Energy will go ex-dividend, meaning the stock will trade lower to reflect that payout. In other words, the stock will likely open 8.5 cents lower than it would have opened on any other day.</p>
<p>In order to be eligible to receive a company's dividend, shareholders must own the stock prior to the ex-dividend date—in this case, Tuesday. Shareholders who own CHK as of the end of Monday's session are eligible to receive the 8.5 cents dividend payout for every share that they own. </p>
<p>According to the company, this dividend will be paid out to shareholders on March 26, 2024. Investors will then be able to either reinvest those dividends back into the stock or use the payment in some other way. </p>
<p><a href="https://www.benzinga.com/stock//dividends">Click here</a> to find details on Chesapeake Energy's previous dividends.</p>
<p>To keep track of which companies are distributing dividends, <a href="https://www.benzinga.com/calendars/dividends">click here</a> to visit our Dividends Calendar.  </p>


Dividends

Chesapeake Energy's Ex-Dividend Date Is Tuesday, Here's What You Need To Know

<p><strong>Chesapeake Energy's</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NYSE">CHK</a>) short percent of float has risen 10.99% since its last report. The company recently reported that it has <strong>13.21 million shares sold short</strong>, which is 10.1% of all regular shares that are available for trading. Based on its trading volume, <strong>it would take traders 5.98 days to cover their short positions on average.</strong></p>
<h3>Why Short Interest Matters</h3>
<p>Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.</p>
<p>Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.</p>
<p><strong>See Also:</strong> <a href="https://www.benzinga.com/short-interest"><strong>List of the most shorted stocks</strong></a></p>
<h3>Chesapeake Energy Short Interest Graph (3 Months)</h3>
<p><img src="https://www.benzinga.com/files/images/story/2024/1709064915_0.png" alt="short_fig" /></p>
<p>As you can see from the chart above the percentage of shares that are sold short for Chesapeake Energy has grown since its last report. This does not mean that the stock is going to fall in the near-term but traders should be aware that more shares are being shorted.</p>
<h3>Comparing Chesapeake Energy's Short Interest Against Its Peers</h3>
<p>Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.</p>
<p>According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Chesapeake Energy's peer group average for short interest as a percentage of float is 6.05%, which means the company has <strong>more</strong> short interest than most of its peers.</p>
<p>Did you know that increasing short interest can actually be <strong>bullish</strong> for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/"><strong>This post by Benzinga Money explains how you can profit from it.</strong></a></p>
<p><em>This article was generated by Benzinga's automated content engine and was reviewed by an editor.</em></p>


Short Sellers

Short Ideas

How Is The Market Feeling About Chesapeake Energy?

<h3>What is a Value Stock?</h3>
<p>A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued. </p>
<h2>Benzinga Insights has compiled a list of value stocks in the energy sector that may be worth watching:</h2>
<ol>
<li><strong>Natural Resources</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NRP#NYSE">NRP</a>) - P/E: 7.27</li>
<li><strong>Helmerich &amp; Payne</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HP#NYSE">HP</a>) - P/E: 9.27</li>
<li><strong>Civitas Resources</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIVI#NYSE">CIVI</a>) - P/E: 7.05</li>
<li><strong>Geospace Technologies</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GEOS#NASDAQ">GEOS</a>) - P/E: 6.75</li>
<li><strong>Chesapeake Energy</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) - P/E: 4.95</li>
</ol>
<p>Natural Resources's earnings per share for Q3 sits at $2.91, whereas in Q2, they were at 2.49. Its most recent dividend yield is at 3.43%, which has decreased by 0.77% from 4.2% in the previous quarter.</p>
<p>This quarter, Helmerich &amp; Payne experienced an increase in earnings per share, which was $0.69 in Q4 and is now $0.97. Civitas Resources has reported Q3 earnings per share at $1.56, which has decreased by 9.3% compared to Q2, which was 1.72. Geospace Technologies's earnings per share for Q1 sits at $0.94, whereas in Q4, they were at 0.33. Most recently, Chesapeake Energy reported earnings per share at $1.31, whereas in Q3 earnings per share sat at $1.09. Its most recent dividend yield is at 0.42%, which has decreased by 2.27% from 2.69% in the previous quarter.</p>
<p>These 5 value stocks were selected by <strong>Benzinga Insights</strong> based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.</p>


CIVI

GEOS

5 Value Stocks To Watch In The Energy Sector

<p>The price of <strong>U.S. natural gas</strong> rose more than 11% on Wednesday, taking its gains this week to nearly 13% after producer <strong>Chesapeake Energy Corp</strong> (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CHK#NASDAQ">CHK</a>) said it <a href="https://www.benzinga.com/topic/natural-gas">was lowering its output.</a></p>
<p>Natural gas futures have fallen 48% from their most recent peak in early January, hitting a three-and-a-half year low of $1.576 on Tuesday, before embarking on a 13% rally.</p>
<p>Chesapeake Energy said on Tuesday that it would lower its gas production in 2024 as gas prices slumped.</p>
<p>It said it would &#8220;defer placing wells on production while reducing rig and completion activity&#8221; due to market dynamics. It also lowered its capital expenditure plans for 2024 by 20%.</p>
<p>Shares in Chesapeake Energy jumped 7.8% on Wednesday to $83.76.</p>
<p><em>Also Read: <a href="https://www.benzinga.com/markets/equities/24/02/37183247/choccy-horror-show-hedge-funds-pile-in-as-cocoa-soars-to-record-high">Choccy-Horror Show: Hedge Funds Pile In As Cocoa Soars To Record High</a></em></p>
<h2 class="wp-block-heading">Warmer Weather</h2>
<p>Warren Patterson, head of commodities strategy at ING, said: &#8220;Natural gas has been trading under pressure as a warmer-than-usual winter in the U.S. weighs on heating fuel demand.&#8221;</p>
<p>The <strong>United States Natural Gas Fund</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UNG#NYSE">UNG</a>), an exchange traded fund that tracks the price of natural gas futures, jumped 11.6% on Wednesday to $16.54, having fallen 40% since Jan. 9.</p>
<p>Heating oil futures have also come under pressure in recent sessions, falling by nearly 10% in the past couple of weeks. Over the same period, the <strong>WisdomTree Heating Oil ETF</strong> (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HEAT#NYSE">HEAT</a>) has fallen by 8%.</p>
<p><figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="750" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/21144239/newplot-97.png" alt="" class="wp-image-224268" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/21144239/newplot-97.png 750w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/21144239/newplot-97-300x260.png 300w" sizes="(max-width: 750px) 100vw, 750px" /></figure></p>
<p><em>Now Read: <a href="https://www.benzinga.com/news/24/02/37218399/gold-etfs-suffer-outflows-await-clues-concerning-us-interest-rates">Gold ETFs Suffer Outflows, Awaits Clues On US Interest Rates</a></em></p>
<p><em>Image created using artificial intelligence with MidJourney.</em></p>


Specialty ETFs

Commodities

Global

ETFs

HEAT

Natural Gas Price Rallies After Chesapeake Energy Lowers Output

Ford, Envista Holdings, and Alaska Air are among additions to GS' Short Duration list

KeyBanc analyst Tim Rezvan maintained a Hold rating on Chesapeake Energy (CHK – Research Report) today. The company's shares closed yesterday at $9...

KeyBanc Sticks to Its Hold Rating for Chesapeake Energy (CHK)

<p><a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a></p>
<p>Crude oil prices have been on fire this year with OPEC&rsquo;s production cuts and the anticipation of interest rate pullbacks. Amidst the bullishness, though, it&rsquo;s important to be circumspect, which should have investors considering <a href="https://investorplace.com/industries/energy/">energy stocks</a> to sell in April.</p>



<p>Building a balanced and diversified portfolio is imperative in capitalizing on the market&rsquo;s current momentum. Also, with rate cuts imminent, it is imperative to take advantage of a market environment that is ripe with both opportunities and challenges. Moreover, with the global economy expected to strengthen and crude oil prices likely to climb further, it&rsquo;s best to offload these lackluster energy stocks to sell.</p>



<h2>Chesapeake Energy (CHK)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/chesapeake_chk1600b-300x169.jpg" alt="Chesapeake Energy (CHK) logo displayed on phone with American flag in background"><div>Source: IgorGolovniov / Shutterstock.com</div></div><p><strong>Chesapeake Energy</strong>&nbsp;(NASDAQ:<a href="https://investorplace.com/stock-quotes/chk-stock-quote/" target="_blank"><strong>CHK</strong></a>) made headlines last year with <a href="https://www.capitalbrief.com/briefing/southwestern-and-chesapeake-energy-near-254b-merger-905aa02b-dc75-47bf-b7e3-d4a108eb96d8/">its massive $7.2 billion acquisition</a> of Southwestern Energy. The merger has effectively created one of the largest natural gas-focused businesses in the North American region.&nbsp;</p>



<p>Though CHK has become a much larger entity in its niche, paying such a steep price for a business operating in the lackluster natural gas space is surprising. Natural gas prices tanked more than 60% last year, and prospects for 2024 aren&rsquo;t too bright either. Though Henry Hub spot prices are expected to average higher this year, they will likely remain lower than $3 per million British thermal units (MMBtu).&nbsp;</p>



<p>The crippling effects of plummeting natural gas prices on CHK are apparent in its recent quarterlies. In the past four consecutive quarters, it posted a double-digit decline in sales growth, handily missing analyst estimates. Add in the $7.2 billion acquisition of Southwestern in such challenging conditions, and you have investors scratching their heads.</p>



<h2>TC Energy (TRP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/trp-stock-1-300x169.jpg" alt="The logo for TC Energy out front of company headquarters in Canada."><div>Source: Brett Holmes / Shutterstock.com</div></div><p>Canadian oil and gas player <strong>TC Energy&nbsp;</strong>(NYSE:<strong><a href="https://investorplace.com/stock-quotes/trp-stock-quote/">TRP</a></strong>)  may seem like an enticing proposition on paper<a href="https://seekingalpha.com/symbol/TRP/dividends/scorecard">, yielding an attractive 7%</a>. However, there&rsquo;s plenty of evidence to suggest it is more of a dividend trap than anything.</p>



<p>For starters, it consistently bleeds free cash flow (<span>FCF</span>), a figure that&rsquo;s been firmly in the negative over the past decade. Additionally, that trend will continue to persist, considering how it finances its dividends through debt issuances. To illustrate my point, it attracts <a href="https://www.gurufocus.com/stock/TRP/summary">a concerning 3 on 10 financial strength rating</a> from GuruFocus, with multiple liquidity metrics in the red.</p>



<p>Furthermore, the company&rsquo;s debt is locked in at peak rates, weighing down its business with rising debt servicing costs. This financial pressure could potentially result in asset sales, hinting at possible desperation, which risks value erosion. Overall, TC Energy&rsquo;s financial positioning raises significant concerns, making it an unattractive bet for investors seeking sustainable value.</p>



<h2>Transocean (RIG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/07/rig1600-300x169.png" alt="Person holding smartphone with logo of offshore drilling company Transocean Ltd. (RIG) on screen in front of website. Focus on phone display. Unmodified photo."><div>Source: T. Schneider / Shutterstock.com</div></div><p><strong>Transocean</strong>&nbsp;stock (NYSE:<a href="https://investorplace.com/stock-quotes/rig-stock-quote/" target="_blank"><strong>RIG</strong></a>) has taken a 20% hit in the past six months. The world&rsquo;s largest offshore drilling contractor faces multiple headwinds, with earnings estimates missing in four out of the past five consecutive quarters. It&rsquo;s grappling with contract startup delays, rising operational costs, and a negative FCF, which has recently weighed down its financials.</p>



<p>Its Q4 results showed a healthy increase in YOY sales but operational costs in tandem, resulting in a trailing twelve-month (<span>TTM</span>) operating income <a href="https://seekingalpha.com/symbol/RIG/income-statement">of negative $64 million</a>. Additionally, its TTM FCF per share stands <a href="https://seekingalpha.com/symbol/RIG/cash-flow-statement">at a negative 34 cents</a>, 158% lower than its 2020 showing at 22 cents. Furthermore, with a debt load of $7 billion, its path to reducing its debt and improving its financial health remains daunting. Though its efforts to extend contract durations and secure higher day rates are commendable, the rising costs and lack of cash flow generation underscore the challenges ahead.</p>



<p><em>On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article.&nbsp;The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a></em>.</p>
<div><p>Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor&rsquo;s of science degree in applied accounting from Oxford Brookes University.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/3-energy-stocks-to-sell-in-april-before-they-crash-burn/">3 Energy Stocks to Sell in April Before They Crash &amp; Burn</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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<p>Jamie Dimon, the CEO of <strong>JPMorgan </strong>(NYSE:<span><a href="https://investorplace.com/stock-quotes/jpm-stock-quote/"><strong>JPM</strong></a></span>), criticized President Joe Biden&rsquo;s decision to pause new approvals for liquefied natural gas (<a href="https://investorplace.com/stock-quotes/lng-stock-quote/"><strong>LNG</strong></a>) exports, describing the move as <a href="https://www.upstreamonline.com/lng/-enormously-naive-major-us-bank-leader-hits-out-at-biden-s-lng-pause/2-1-1623973">&ldquo;enormously naive&rdquo;</a> and politically motivated. In a shareholder letter, Dimon argued that LNG is vital for reducing global carbon dioxide emissions. Smart money is still clearly bullish on LNG, which forms the backdrop of this list of <a href="https://investorplace.com/industries/energy/natural-gas/">natural gas stocks</a> to buy.</p>



<p>Furthermore, the ongoing geopolitical tensions and supply chain disruptions have heightened the need for secure and reliable energy sources. LNG, with its ability to be transported globally, has emerged as an attractive option for countries looking to diversify their energy mix and enhance energy security.</p>



<p>Investors interested in capitalizing on the potential of the LNG market may want to consider this list of natural gas stocks. I feel these companies represent the best value for money for investors and should not be overlooked.</p>



<h2>Cheniere Energy (LNG)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/02/cheniere_energy_lng1600-300x169.jpg" alt="LNG stock: the Cheniere logo displayed on a phone"><div>Source: IgorGolovniov / Shutterstock.com</div></div><p><strong>Cheniere</strong> <strong>Energy </strong>(NYSEAMERICAN:<a href="https://investorplace.com/stock-quotes/lng-stock-quote/"><strong>LNG</strong></a>) is a major LNG exporter in the U.S., owning several pipelines and storage facilities, which positions it as a significant player in the natural gas industry.<br><br>LNG set a <a href="https://lngir.cheniere.com/news-events/press-releases/detail/293/cheniere-reports-fourth-quarter-and-full-year-2023-results">financial guidance</a> anticipating a Consolidated Adjusted EBITDA of $5.5 to $6 billion and a distributable cash flow of $2.9 to $3.4 billion. That guidance reflects their projections of continuing robust performance in the LNG market despite the short-term headwinds offered by Biden.</p>



<p>Furthermore, in 2023, <a href="https://finance.yahoo.com/news/cheniere-energy-inc-amex-lng-153255044.html">LNG reported</a> substantial financial improvements, with revenues hitting approximately $20.4 billion and a net income of $9.9 billion. That marked significant year-over-year growth.</p>



<p>The average stock price target for LNG in 2024 is $201.08, with a potential high of $225 and a low of $178. That sets a consensus upside of 15% to 46%, which makes it one of those natural gas stocks to buy.</p>



<h2>Chesapeake Energy (CHK)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/03/chk1600-300x169.jpg" alt="Image of an internet browser with Chesapeake Energy's (CHK) homepage on it. The Chesapeake Energy logo on the page is amplified by a magnifying glass."><div>Source: Casimiro PT / Shutterstock.com</div></div><p><strong>Chesapeake Energy</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/chk-stock-quote/"><strong>CHK</strong></a></span>) has successfully restructured post-bankruptcy, aiming to capitalize on the increasing demand for natural gas.</p>



<p>CHK experienced a <a href="https://www.prnewswire.com/news-releases/chesapeake-reports-fourth-quarter-and-full-year-2023-financial-and-operating-results-and-issues-2024-outlook-302066581.html">significant increase in net income</a> last year, reaching $2.4 billion for the year, accompanied by a healthy free cash flow&#8203;. It also aims to balance its capital expenditures and drilling activities in response to market conditions, projecting to drill between 95 and 115 wells in 2024.</p>



<p>More exciting developments could be in the cards for CHK, notably its <a href="https://rextag.com/blog/Chesapeake-Dominates-with-7-4B-Southwestern-Buy">ongoing merger</a> with <strong>Southwestern Energy</strong> (NYSE:<span><a href="https://investorplace.com/stock-quotes/swn-stock-quote/"><strong>SWN</strong></a></span>), which is expected to significantly enhance its scale and operational capabilities. That merger is positioned to make CHK the largest natural gas producer in the U.S. The combined value of the merged companies is expected to be around $24 billion and is anticipated to conclude this quarter.</p>



<p>These factors make CHK one to watch, as it would create a solid blue chip option in the LNG space that&rsquo;s currently missing from investors&rsquo; perception.</p>



<h2>APA Corporation (APA)</h2>



<div><img width="300" height="165" src="https://investorplace.com/wp-content/uploads/2018/06/GLNGmsn-compressed-300x165.jpg" alt="liqui"><div>Source: Shutterstock</div></div><p><strong>APA Corporation</strong> (NASDAQ:<span><a href="https://investorplace.com/stock-quotes/apa-stock-quote/"><strong>APA</strong></a></span>) is an exploration and production company with significant natural gas reserves in the U.S., Egypt and the North Sea.</p>



<p>The company anticipates <a href="https://www.investing.com/news/stock-market-news/earnings-call-apa-corporation-outlines-robust-q4-performance-2024-focus-93CH-3313244">strong growth in the U.S.,</a> projecting an 8% year-over-year increase and over 10% growth from Q4 2023 to Q4 2024. Meanwhile, for Q4 2023, APA reported a robust financial performance with an adjusted net income of $352 million and significant free cash flow. They continue to focus on shareholder returns, planning to redirect a large portion of their free cash flow back to shareholders&#8203;.<br><br>APA is suitable for income investors, but I believe it&rsquo;s better for those with a long time horizon. The <a href="https://stockanalysis.com/stocks/apa/dividend/">company&rsquo;s dividend yield of 3.10%</a> is robust, but its dividend growth rate of 14.29% and its total shareholder yield of 10.30% makes it a strong contender as one of those natural gas stocks to buy now.</p>



<p><em>On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com <a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/">Publishing Guidelines.</a></em></p>
<div><p>Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.</p></div><h3>More From InvestorPlace</h3>
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<p>The post <a href="https://investorplace.com/2024/04/dimons-lng-rant-3-natural-gas-stocks-to-buy-despite-bidens-export-pause/">Dimon&#8217;s LNG Rant: 3 Natural Gas Stocks to Buy Despite Biden&#8217;s Export Pause</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.</p>

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