Chesapeake Energy’s stock performance
Following Chesapeake Energy’s (CHK) 2Q16 earnings release on August 4, its stock decreased by ~3%. YoY (year-over-year), Chesapeake Energy’s stock has decreased by ~30%.
In this part of the series, we’ll analyze Chesapeake Energy’s stock performance with respect to movements in the broader industry and the broader market.
As the graph above shows, Chesapeake Energy’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL) and natural gas prices (UNG). These have also been driving the broader industry ETF, the Energy Select Sector SPDR ETF (XLE).
From July 22 to August 5, Chesapeake Energy’s stock was initially over-performing the Energy Select Sector SPDR ETF (XLE). However, toward the end of the period, it ended up giving lower returns compared to XLE. Chesapeake Energy’s stock decreased by ~9.3% during this period while XLE fell by just ~1.1%.
CHK also underperformed the SPDR S&P 500 ETF (SPY), which increased by 0.4% during this period.
Chesapeake Energy’s stock decreased ~3% on August 4, on the back of its dismal 2Q16 earnings. CHK’S 2Q16 revenue and earnings had both missed analysts’ estimates. So, the Market seems to have reacted negatively to this.
Meanwhile, EQT (EQT) has seen its stock price decrease by ~6% on a year-over-year basis.
Please read the first part of this series to learn more about Chesapeake Energy’s 2Q16 performance.