CHK - surprisingly good earnings

Whilst the main market settled moderately mixed, there was notable strength in Chesapeake Energy (CHK), which settled higher by a very powerful 21.7% at $3.20. Q4 earnings were better than expected, and it gives hope this will be a survivor into the 2020s.


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Summary

First, see...

http://www.chk.com/Investors

Presentation download: http://www.chk.com/Documents/investors/Q4%202017%20Earnings%20Presentation.pdf
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Earnings were significantly better than most were expecting. Some details in the report offer hope for the future, but there are issues with long term debt - see page 9 of the presentation. We're in a rising rate environment, and CHK will have to at least roll that debt out, and that will be at higher rates.The company clearly needs sustainably higher WTIC/Nat' gas prices.


Technically...

Its been a horror story. The stock became stuck at resistance in summer 2014, and with energy prices imploding, the stock cooled from $29.37 to $1.50 in Feb' 2016. Since then, a push to the $8s, but recent cooling to $2.53, as Nat' gas prices swung from $3.63 to $2.53. The stock is clearly mid/long term bearish.


Q. Do I like the stock?

CHK does look like it will be a survivor, but I strongly favour the quartet of APC, PSX, LNG, and PBR.