Chesapeake Energy: Natural Gas Pricing Presents An Opportunity

Anthony Garcia
864 Followers

Summary

  • Its strategic positioning in high-value natural gas markets ensures Chesapeake will see high-margin returns compared to competitors for many years to come.
  • Dividends are based on a regular and special structure, with special increases with FCF. Even at current NG pricing, they're near 6% with tons of runway in the future.
  • The company's stock prices are currently depressed due to low natural gas pricing, but this won't last forever. A contango in the NG markets forecasts significant price rises.
Industrial pipelines and valves on sunset sky background, banner.

muhammet sager

I believe Chesapeake Energy (CHK) to be a little bit of a diamond in the rough, as it were. Not because they're necessarily rough, they aren't, but because the natural gas market is depressed at the moment. Chesapeake has great leadership, and is looking for a chance to

This article was written by

864 Followers
Almost 20 years in the markets. Investor, algorithmic trader, programmer, money manager, and stock analyst. I proudly taught myself everything, and very proudly have zero big fund Wall Street bonafides - I focus almost entirely on the DIY investor who is just like me. I also manage and advise private equity funds who wanted nothing to do with the big boys on Wall Street. My book is launching in August! Sign up for my FREE weekly newsletter with market and economic analysis, as well as a stock pick at https://www.investingisntcomplicated.com/free-newsletter

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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