Chesapeake’s Stock Up 15% in 2 Weeks since 3Q16 Earnings



Chesapeake’s stock movement

Chesapeake Energy (CHK) has been one of the top-performing energy stocks in the last couple of weeks. On November 23, 2016, CHK rose 3% to a two-week high of $6.64. This series will focus on what’s been driving the upwards momentum in CHK’s stock. Let’s begin by looking at Chesapeake’s earnings turnaround in 3Q16.

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CHK’s 3Q16 earnings were better than expected

In a surprise turn of events, Chesapeake reported positive earnings in 3Q16 after posting quarterly losses in the previous four quarters. The company reported adjusted EPS (earnings per share) of $0.09. Wall Street analysts’ consensus EPS estimate was -$0.03. CHK’s 3Q16 revenues also came in better than expected, a first in 2016.

Chesapeake Energy’s upstream peer EQT (EQT) reported 3Q16 earnings of -$0.26 per share. Cabot Oil & Gas (COG) had 3Q16 earnings of -$0.04 per share. Noble Energy (NBL) reported EPS of $0.07. All of these companies make up ~20% of the First Trust ISE-Revere Natural Gas Index Fund (FCG).

To read more about how CHK performed in 3Q16, read Market Realist’s Chesapeake Energy’s 3Q16 Earnings and Revenue Beat Estimates.

Following Chesapeake Energy’s (CHK) 3Q16 earnings release on November 3, its stock rose ~1.7%. Since then, CHK has mostly kept its upward momentum. In the next part, we’ll be discussing another key factor that has been buoying CHK’s stock.


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