How Did Chesapeake Stock Perform after Its 3Q16 Earnings?



Chesapeake Energy’s stock performance

Following Chesapeake Energy’s (CHK) 3Q16 earnings release on November 3, its stock rose ~1.7% on November 3. Chesapeake Energy’s stock fell~29% YoY (year-over-year).

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.

Chesapeake’s peers EQT Corporation (EQT) and Cabot Oil & Gas (COG) fell ~3% and ~9%, respectively, on a YoY basis.

As the above graph shows, Chesapeake Energy’s performance has been driven mainly by WTI (West Texas Intermediate) crude oil prices (OIL) and natural gas prices (UNG). They have also been driving the Energy Select Sector SPDR ETF (XLE).

From October 20 to November 3, Chesapeake Energy’s stock was underperformed the Energy Select Sector SPDR ETF (XLE). Toward the end of the period, it gave lower returns compared to XLE. Chesapeake Energy’s stock fell ~22% during this two-week period, while XLE fell ~3.5%.

Chesapeake Energy also underperformed the SPDR S&P 500 ETF (SPY). SPY fell 2.4% during this period.

Chesapeake Energy’s stock rose ~2% on November 3 due to its better-than-expected 3Q16 earnings.

Read Part 1 of this series for our discussion on Chesapeake Energy’s performance in 3Q16.

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