| 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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EN DÉVELOPPEMENT |
CODE : CHK |
ISIN : US1651671075 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Chesapeake Energy est une société de production minière basée aux Etats-Unis D'Amerique. Chesapeake Energy est en développement de projets de gaz et de pétrole en USA. Son principal projet en développement est DEEP BOSSIER en USA. Chesapeake Energy est cotée aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 79,4 milliards US$ (74,5 milliards €). La valeur de son action a atteint son plus bas niveau récent le 13 mars 2020 à 0,12 US$, et son plus haut niveau récent le 18 novembre 2022 à 99,94 US$. Chesapeake Energy possède 909 242 558 actions en circulation. |