| Recovery Is Uncertain in an Underperforming Energy Sector | |
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Chesapeake Energy Focuses on Capital Efficiency to Repay Its Debt (Continued from Prior Part) Market performance
The energy sector has seen dismal performance over the last year, witnessing the same underperformance as oil and gas prices. Independent explorers and producers’ share prices lost ~50% in the last year.
Refiners were the best stocks in the energy sector as oil’s price drop benefited them due to lowered feedstock costs. Integrated oil majors such as ExxonMobil (XOM) and Chevron (CVX) managed to stay strong due to their robust balance sheets and healthy cash flows from downstream operations.
Above is a chart of the share price movements of independent explorers in 2015. Chesapeake Energy (CHK) and CONSOL Energy (CNX) have corrected ~70% in the one-year period. Laredo Petroleum Holding (LPI) fell ~28% in the same period.
Outlook
Recovery in exploration companies’ share prices seems uncertain, as the energy sector is surrounded by further lower price targets of fossil fuels. Upstream energy players (XOP) have adopted a simple tactic in this lower-for-longer energy price phase. Companies aim to increase sales revenue by increasing production while spending less on operations.
Many energy companies (XLE) have seen spending capital wisely and achieving capital efficiency. Lenders will likely stay worried until energy prices recover, but companies’ disciplined strategies to hike production while lowering spending and offloading non-core assets can take them to the other side of the tunnel.
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Chesapeake Energy Corporation
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DEVELOPMENT STAGE |
CODE : CHK |
ISIN : US1651671075 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Chesapeake Energy is a producing company based in United states of america. Chesapeake Energy develops natural gas and oil in USA. Its main asset in development is DEEP BOSSIER in USA. Chesapeake Energy is listed in Germany and in United States of America. Its market capitalisation is US$ 83.7 billions as of today (€ 78.2 billions). Its stock quote reached its lowest recent point on March 13, 2020 at US$ 0.12, and its highest recent level on November 18, 2022 at US$ 99.94. Chesapeake Energy has 909 242 558 shares outstanding. |