Why Chesapeake Is Poised to Bounce Back

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Mar 18, 2013 at 9:59AM
Energy, Materials, and Utilities

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


Oil and gas exploration and production

Trailing-12-Month Revenue

$12.3 billion


CFO Domenic Dell'Osso

COO Steven Dixon

Return on Equity (average, past 3 years)


Cash / Debt

$291.0 million / $12.9 billion

Dividend Yield



Anadarko Petroleum



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.

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