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What's in Store for Chesapeake Energy (CHK) in Q4 Earnings?

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Chesapeake Energy Corporation  is set to report fourth-quarter 2022 results on Feb 21, after the closing bell.

In the last reported quarter, the upstream energy company’s earnings were $5.06 per share, beating the Zacks Consensus Estimate of $4.48.

In the trailing four quarters, Chesapeake Energy beat the Zacks Consensus Estimate for the bottom line thrice and missed the same once, delivering an earnings surprise of 17.1%, on average. This is depicted in the graph below:

Let’s delve into the factors that are anticipated to have influenced the company’s performance in the December-end quarter.

Chesapeake Energy Corporation Price and EPS Surprise

 

Chesapeake Energy Corporation Price and EPS Surprise

Chesapeake Energy Corporation price-eps-surprise | Chesapeake Energy Corporation Quote

Estimate Trend

The Zacks Consensus Estimate for CHK’s fourth-quarter earnings per share of $2.96 has witnessed no upward revision and four downward movements in the past 30 days. The consensus estimate suggests a year-over-year increase of 23.8%.

The Zacks Consensus Estimate for fourth-quarter revenues of $1.5 billion indicates a 50.8% decline from the year-ago reported figure.

Factors to Consider

Being a leading natural gas producer with a strong footprint in Marcellus and Haynesville plays, Chesapeake Energy is likely to have benefited from the strength in natural gas realizations.

The Zacks Consensus Estimate for CHK’s natural gas production in the fourth quarter is pegged at 3,674 MMcf per day, indicating an increase from the year-ago reported level of 2,210 MMcf per day. 

However, the upward cost trajectory is likely to have continued in the fourth quarter due to the current inflationary environment. The increase in costs is expected to have dented Chesapeake Energy’s bottom line in the to-be-reported.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Chesapeake Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. As you can see, that is not the case here. 

Earnings ESP: Chesapeake Energy has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Chesapeake Energy currently carries a Zacks Rank #5 (Strong Sell).

Stocks That Warrant a Look

Here are some companies from the Energy space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming quarterly reports:

PDC Energy, Inc.  has an Earnings ESP of +1.64% and is a Zacks #3 Ranked player at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PDC Energy is scheduled to release fourth-quarter results on Feb 22. The Zacks Consensus Estimate for PDCE’s quarterly earnings is pegged at $3.05 per share, suggesting an increase from the prior-year reported figure.

Viper Energy Partners LP (VNOM - Free Report) has an Earnings ESP of +3.57% and has a Zacks Rank #3.

Viper Energy Partners is likely to come out with an earnings surprise when it reports fourth-quarter earnings on Feb 21. The Zacks Consensus Estimate for VNOM’s quarterly earnings is pegged at 27 cents per share, suggesting a decline from the prior-year reported figure.

Northern Oil and Gas, Inc. (NOG - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank of 3.

Northern Oil and Gas is scheduled to report fourth-quarter results on Feb 23. The Zacks Consensus Estimate for NOG’s earnings is pegged at $1.65 per share, suggesting a significant increase from the prior-year quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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