Chesapeake Energy’s stock performance
Following Chesapeake Energy’s (CHK) 4Q16 earnings release on February 23, 2017, its stock fell ~2.8% on the day. Chesapeake Energy stock rose ~158% 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.
As the graph above shows, Chesapeake Energy’s performance has been driven mainly by WTI (West Texas Intermediate) natural gas prices (UNG) and crude oil prices (USO). They’ve also been driving the Energy Select Sector SPDR ETF (XLE).
From February 10 to February 24, Chesapeake Energy stock mostly underperformed XLE. Toward the end of the period, it gave lower returns compared to XLE. Chesapeake Energy stock fell ~11% during this two-week period, while XLE fell ~3%. Chesapeake Energy also underperformed the SPDR S&P 500 ETF (SPY). SPY rose 2.3% during the same period.
Chesapeake Energy stock fell ~3% on February 23 due to its weaker-than-expected 4Q16 earnings and revenue. Natural gas prices’ ~1% rise on the same day failed to pull CHK higher. CHK fell another 1.5% on February 24 as natural gas prices continued to inch higher.
Read the first part of this series for our discussion on Chesapeake Energy’s performance in 4Q16.