Why Chesapeake Is Poised to Bounce Back

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas giant Chesapeake Energy (NYSE: CHK  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Chesapeake and see what CAPS investors are saying about the stock right now.

Chesapeake facts

Headquarters (founded)

Oklahoma City (1989)

Market Cap

$14.5 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$12.3 billion

Management

CFO Domenic Dell'Osso

COO Steven Dixon

Return on Equity (average, past 3 years)

6.7%

Cash / Debt

$291.0 million / $12.9 billion

Dividend Yield

1.6%

Competitors

Anadarko Petroleum

BP

ConocoPhillips

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 7,656 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, All-Star Quaker08, succinctly summed up the Chesapeake bull case for our community:

New chairman of board (Archie Dunham) is starting to clean up this mess. Expect an experienced new CEO in the next few months to bring some accountability back to the company. I expect sales of non-core assets to continue until [Chesapeake] is focused on only a handful of basins (Eagle Ford, Marcellus, Niobrara, and Utica). This transformation could unlock the value in [Chesapeake's] assets.

In fact, energy investors would be hard-pressed to find another company trading at a deeper discount than Chesapeake Energy. Its share price depreciated after negative news surfaced concerning the company's management and spiraling debt picture. While the debt issues still persist, giant steps have been taken to help mitigate the problems. To learn more about Chesapeake and its enormous potential, you're invited to check out The Motley Fool's brand-new premium report on the company. Simply click here now to access your copy.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.


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9/23/2014 4:01 PM
CHK $24.26 Down -0.05 -0.21%
Chesapeake Energy CAPS Rating: ****

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