FMP
Mar 16, 2023 9:44 PM - Davit Kirakosyan(Last modified: Dec 19, 2023 5:49 PM)
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.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...