Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

Chesapeake Energy Corporation (Chesapeake) (NYSE: CHK) is a natural gas and oil exploration and production company. The Company is engaged in the acquisition, exploration, and development of properties to produce oil, natural gas, and natural gas liquids (NGLs) from underground reservoirs. It owns a diverse portfolio of onshore United States unconventional natural gas and liquids assets, including interests in approximately 5,000 gross oil and natural gas wells.

This US Inflation Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• CHK's share price has given a return of 18.25% in the past three months. Similarly, in the long term, the stock has given a return of 11.33% over the past nine months.
• The stock is currently trading near to the higher end of its 52-week range of USD 91.54 and 52-week low price of USD 72.84, with the expectations of an upside movement once the USD90 is broken.
• The price is currently above its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 69.10

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Key Metrics

When comparing industry medians to Chesapeake Energy Corporation's (CHK) performance, significant disparities emerge across various financial metrics. CHK notably outperforms industry medians in gross margin, reporting 82.3% compared to the industry's median of 59.70%. Similarly, CHK demonstrates superiority in operating margin at 40.4%, exceeding the industry median of 26.60%, as well as in pretax margin, recording 40.1% against the industry median of 25.30%. Moreover, CHK exhibits a higher net margin of 31.1% compared to the industry median of 16.9%. Furthermore, in terms of return on equity (ROE), CHK's FY23 performance stands at 24.40%, surpassing the industry median of 16.60%. These figures underscore CHK's robust financial performance and efficiency compared to industry benchmarks.

Section 2: Chesapeake Energy Corporation (“Buy” at the closing market price of USD 91.47, as of April 25, 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 25, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.