A month has gone by since the last earnings report for Chesapeake Energy Corporation . Shares have lost about 2.8% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is CHK due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2017 Results
Chesapeake Energy Corporation reported strong fourth-quarter 2017 results, courtesy of higher oil equivalent production and price realizations.
Earnings per share (excluding special items) of 30 cents surpassed the Zacks Consensus Estimate of 25 cents and the year-ago adjusted figure of 7 cents.
Total revenues surged to $1,258 million from $678 million a year ago. The top line also beat the Zacks Consensus Estimate of $1,234 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 55 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of 4%. Production comprised of approximately 9 million barrels (MMbbls) of crude (up 12% year over year), 239 billion cubic feet (bcf) of natural gas (up 1.3%) and 5 MMbbls of NGL (flat).
Oil equivalent realized price — including realized gains (losses) on derivatives — in the reported quarter was $24.41 per barrel of oil equivalent, up 20.2% year over year.
Total capital expenditure increased to $523 million from $463 million in the fourth quarter of 2016.
On the cost front, quarterly production expenses decreased 16% year over year to $2.50 per Boe.
Expenses
Total fourth-quarter 2017 operating expense was $ 2,114 million, down more than 8% year over year.
Financials
At the end of the fourth quarter, Chesapeake had cash balance of $5 million. Net long-term debt totaled $9,921 million.
Proved Reserves
As of Dec 31, 2017, the company’s total proved reserves was recorded at 1,912 MMBoe, up almost 12% year over year.
Guidance
Chesapeake’s production guidance for 2018 is 515,000-550,000 Boe per day. Moreover, the recent capital budget projection for 2018 is $1,975-$2,375 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimate. There have been two revisions higher for the current quarter compared to three lower.
Chesapeake Energy Corporation Price and Consensus
VGM Scores
At this time, CHK has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions looks promising. Interestingly, CHK has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Chesapeake Energy (CHK) Down 2.8% Since its Last Earnings Report?
A month has gone by since the last earnings report for Chesapeake Energy Corporation . Shares have lost about 2.8% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is CHK due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Fourth-Quarter 2017 Results
Chesapeake Energy Corporation reported strong fourth-quarter 2017 results, courtesy of higher oil equivalent production and price realizations.
Earnings per share (excluding special items) of 30 cents surpassed the Zacks Consensus Estimate of 25 cents and the year-ago adjusted figure of 7 cents.
Total revenues surged to $1,258 million from $678 million a year ago. The top line also beat the Zacks Consensus Estimate of $1,234 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 55 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of 4%. Production comprised of approximately 9 million barrels (MMbbls) of crude (up 12% year over year), 239 billion cubic feet (bcf) of natural gas (up 1.3%) and 5 MMbbls of NGL (flat).
Oil equivalent realized price — including realized gains (losses) on derivatives — in the reported quarter was $24.41 per barrel of oil equivalent, up 20.2% year over year.
Total capital expenditure increased to $523 million from $463 million in the fourth quarter of 2016.
On the cost front, quarterly production expenses decreased 16% year over year to $2.50 per Boe.
Expenses
Total fourth-quarter 2017 operating expense was $ 2,114 million, down more than 8% year over year.
Financials
At the end of the fourth quarter, Chesapeake had cash balance of $5 million. Net long-term debt totaled $9,921 million.
Proved Reserves
As of Dec 31, 2017, the company’s total proved reserves was recorded at 1,912 MMBoe, up almost 12% year over year.
Guidance
Chesapeake’s production guidance for 2018 is 515,000-550,000 Boe per day. Moreover, the recent capital budget projection for 2018 is $1,975-$2,375 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimate. There have been two revisions higher for the current quarter compared to three lower.
Chesapeake Energy Corporation Price and Consensus
Chesapeake Energy Corporation Price and Consensus | Chesapeake Energy Corporation Quote
VGM Scores
At this time, CHK has an average Growth Score of C, though it is lagging a lot on the momentum front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending downward for the stock and the magnitude of these revisions looks promising. Interestingly, CHK has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.