Chesapeake Energy (CHK) Stock: Continues Up On Strong Earnings

Chesapeake Energy Corporation (NYSE: CHK) is climbing in the market this morning. However, if you’re digging for press releases or SEC filings issued this morning, you’ll be hard pressed to find anything. So, what’s the deal?

It all has to do with a strong earnings report that came a couple of days ago. The company produced profits and set the stage for a strong 2019 year. Today, we’ll talk about:

  • The recent earnings report;
  • what we’re seeing from the stock; and
  • what we’ll be watching for ahead.

CHK Continues Skyward On Strong Financial Results

As mentioned above, Chesapeake Energy is having a strong day in the market today, following up on the recent high-volume fueled gains that we’ve seen as of late. While the company hasn’t released any news this morning, there’s a good reason for the gains.

Recently, CHK reported its earnings for the fourth quarter. During the quarter, the company generated earnings in the amount of $0.21 per share on revenue of $3.07 billion. Both of these figures beat the expectations of analysts, who were epecting $0.18 in earnings per share and $2.28 billion in revenue.

Also, net income for the quarter was reported at $486 million. That works out to $0.49 per share. That’s a rise of 57% from one year ago, when the company reported net income of $309 million or $0.33 per share.

Finally, the company is expecting to increase oil production in 2019 by around 32%. Capital expneditures are expected to be about flat at a range between $2.3 billion and $2.5 billion.

In a statement, Doug Lawler, CEO at CHK, had the following to offer:

Our 2018 accomplishments of 10% adjusted oil growth, improved realizations and lower absolute cash costs compared to 2017 resulted in the highest EBITDA generated per boe for Chesapeake since 2014, when oil averaged more than $90 per barrel and gas averaged more than $4 per thousand cubic feet.

Our oil focus will be fully evident in 2019, as annual net oil volumes from the PRB are expected to more than double compared to 2018 and as we begin a robust drilling program on our Brazos Valley asset.

What We’re Seeing From The Stock 

One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Chesapeake Energy, the news proved to be overwhelmingly positive.

After all, strong earnings are always a good thing. The strong report, coupled with guidance for a great 2019 year, is proving to excite investors who are continuing to send the stock for the top.

As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:27), CHK is trading at $3.20 per share after a gain of $0.24 per share or 8.11% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on CHK. In particular, we’re interested in following the story surrounding the company’s continued work to expand production and grow value for investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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