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Here’s What’s Pulling Down Chesapeake Energy Stock

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Feb. 23 2017, Updated 7:48 a.m. ET

Chesapeake Energy stock

Chesapeake Energy (CHK) stock, like several other energy stocks, has fallen significantly. It had its share of ups and downs, following natural gas prices (UNG) (UGAZ). Natural gas prices have fallen ~15.0% since the beginning of the year. Chesapeake Energy actually outperformed natural gas prices.

However, CHK underperformed the Energy Select Sector SPDR ETF (XLE), which has returned approximately -5.5% year-to-date. The S&P 500 ETF (SPY) (SPX-INDEX) returned ~4.4% in the same period.

Chesapeake Energy (CHK) stock had a good run in 2016, given the trials it had gone through. It ended 2016 on a positive note after its Haynesville divestiture news in December 2016 and its debt management efforts deployed throughout the year.

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Along with natural gas prices, crude oil prices have also been dragging down the energy sector. Investors will be watching closely this week since several upstream companies, including Chesapeake Energy, are scheduled to release their earnings during a time when energy prices remain elusive. To know more about CHK’s 4Q16 earnings expectation, be sure to read Can Positive 4Q16 Earnings Boost Chesapeake Energy Stock?

Year-over-year, however, Chesapeake Energy had a ~223.0% return compared to XLE’s ~29.0% return. The return could be due to CHK’s debt management efforts, including asset sales.

You can read more about Chesapeake Energy in CHK Survived the Odds in 2016, But Can Investors Relax Now?

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