FMP
Chesapeake Energy’s Review Post Q1 Earnings
Mar 16, 2023 9:44 PM - Davit Kirakosyan(Last modified: Dec 19, 2023 5:49 PM)
Image credit: FMP
RBC Capital provided their views on Chesapeake Energy (NASDAQ:CHK) following recently announced Q1 results, with EPS of $4.22 beating the Street estimate of $2.93. The company also announced the sale of a portion of its Eagleford assets.
The analysts believe the company is in a strong position to return free cash flow to shareholders, bolstered by recently announced acquisitions. At strip commodity prices, the fixed plus variable dividends support a 4-5% yield, and the $2.5 billion of sale proceeds likely are used for opportunistic buybacks (once the transactions close).
The analysts think acquisitions are not a high priority at this time given the company's high bar for accretion across several operational and financial metrics. Management has slowed activity given a softer natural gas environment, but the analysts think there is an optionality to add some activity in late 2023 with a supportive macro.
Other Blogs
May 27, 2024 3:30 PM - Rajnish Katharotiya
The best 5 GPU stocks other than NVDA
In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...
Jun 10, 2024 3:46 AM - Parth Sanghvi
Fixed Costs vs Variable Costs: Understanding Cost Structures
Understanding the difference between fixed and variable costs is essential for managing a business’s finances. These costs form the foundation of any cost structure and play a critical role in pricing, budgeting, and profit margin analysis. In this guide, we will explore what fixed and variable cost...
Jul 10, 2024 2:34 AM - Parth Sanghvi
Capital Budgeting Techniques: NPV, IRR, and More - A Comprehensive Guide
Capital budgeting is a critical financial process that companies use to evaluate and select long-term investments or projects. It involves assessing potential expenditures and determining their profitability to ensure that resources are allocated effectively. This comprehensive guide covers essentia...
