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Is Chesapeake Energy's Earnings Miss a Concern for Investors?

By Tyler Crowe – Feb 26, 2014 at 6:48PM

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While this quarter's earnings results will not impress many on Wall Street, Chesapeake did have some signs of promise worth noting.

Whenever a company reports quarterly earnings, those on Wall Street seem to fixate on the bottom line. While net income is extremely important, you also need to dig a little deeper to see how those numbers came to be. Those who decided to walk away from Chesapeake Energy (CHKA.Q) after a less than desirable net income result and a decline in production should go back and look at it again, because they might find they were a bit hasty to sell.

For those who read deeper into the results, they would have found that the overall decline in production was by design, and there are signs that Chesapeake is starting down the path that other successful independent oil and gas producers like Devon Energy (DVN -3.64%) and EOG Resources (EOG -4.73%). To find out what Will Street may have overlooked this quarter and how Chesapeake is following Devon and EOG, tune in to the following video.

Tyler Crowe has no position in any stocks mentioned. You can follow him at Fool.com under the handle TMFDirtyBird, on Google +, or on Twitter, @TylerCroweFool.

The Motley Fool owns shares of Devon Energy and EOG Resources. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Chesapeake Energy Stock Quote
Chesapeake Energy
CHKA.Q
Devon Energy Stock Quote
Devon Energy
DVN
$64.13 (-3.64%) $-2.42
EOG Resources Stock Quote
EOG Resources
EOG
$127.79 (-4.73%) $-6.35

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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