Why Chesapeake Is Poised to Outperform

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, Okla. (1989)

Market Cap

$14.2 billion

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$13.3 billion

Management

Acting CEO/COO Steven Dixon

CFO Domenic Dell'Osso, Jr.

Return on Equity (average, past 3 years)

5%

Cash/Debt

$33.0 million/$13.6 billion

Dividend Yield

1.6%

Competitors

Anadarko Petroleum 

BP 

ConocoPhillips 

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

On CAPS, 97% of the 7,657 members who have rated Chesapeake believe the stock will outperform the S&P 500 going forward.   

Just last week, one of those Fools, EducatedGuesser, succinctly summed up the Chesapeake bull case for our community:

Undervalued stock undergoing reorganization. Nat gas prices have dropped in the US, but they are due to start rising as transportation networks (pipelines, etc) are this fuel is becoming more efficient and creating new markets to sell this low cost fuel. International markets are showing demand.

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.


Read/Post Comments (1) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 11, 2013, at 11:08 PM, kirkydu wrote:

    Carl Icahn and Bruce Berkowitz are taking the long side of this bet. Chesapeake is a "must own" at The American Resource Boom letter.

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