Chesapeake Energy Corporation (CHK - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. In the past year, the stock, carrying a Zacks Rank #1 (Strong Buy), has gained 69.6%, outpacing the 65.2% rise of the composite stocks belonging to the industry.
What’s Favoring the Stock?
Chesapeake Energy is a premium natural gas operator and is well-positioned to gain from the significant improvement in gas prices in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation is spreading across roughly 650,000 net acres, where an average of four to five rigs will be operating this year.
Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Overall, being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.
CHK has a strong focus on returning capital back to shareholders as reflected in June 2022. It has doubled its buyback program to up to $2 billion in an aggregate value of its common stock from the prior $1 billion. The program will possibly continue through year-end 2023. Stockholders are rewarded through lucrative dividend payments as reflected in the announcement of a base dividend increment of 10% to $2.20 per share annually.
Other Stocks to Consider
Other top-ranked players in the energy space include BP plc (BP - Free Report) , EQT Corporation (EQT - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. BP stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects had been delivered.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of almost 337%.
The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Chesapeake Energy Corporation (CHK - Free Report) has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. In the past year, the stock, carrying a Zacks Rank #1 (Strong Buy), has gained 69.6%, outpacing the 65.2% rise of the composite stocks belonging to the industry.
What’s Favoring the Stock?
Chesapeake Energy is a premium natural gas operator and is well-positioned to gain from the significant improvement in gas prices in the past year. In the prolific gas-rich Marcellus shale play, CHK’s operation is spreading across roughly 650,000 net acres, where an average of four to five rigs will be operating this year.
Chesapeake Energy also has a strong presence in Haynesville and Eagle Ford shale play, making the production outlook bright. Overall, being a leading upstream energy player, CHK has more than 15 years of inventory, signifying more than 2,200 gas locations.
CHK has a strong focus on returning capital back to shareholders as reflected in June 2022. It has doubled its buyback program to up to $2 billion in an aggregate value of its common stock from the prior $1 billion. The program will possibly continue through year-end 2023. Stockholders are rewarded through lucrative dividend payments as reflected in the announcement of a base dividend increment of 10% to $2.20 per share annually.
Other Stocks to Consider
Other top-ranked players in the energy space include BP plc (BP - Free Report) , EQT Corporation (EQT - Free Report) and Exxon Mobil Corporation (XOM - Free Report) . All the stocks currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The positive oil price trajectory is a boon for BP’s upstream operations. The favorable oil price scenario and increasing daily oil equivalent production volumes are aiding the energy giant’s bottom line. BP stated that the target of adding a net production of 900 thousand barrels of oil equivalent per day by 2021 from key new projects had been delivered.
In the core of gas-rich Marcellus and Utica Shales, EQT Corporation has a strong foothold. Being a leading producer of natural gas, EQT is benefiting from high natural gas prices. For 2022, it is likely to witness earnings growth of almost 337%.
The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. This is because ExxonMobil has a pipeline of key projects in the Permian – the most prolific basin in the United States – and offshore Guyana.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on BP - FREE
Get the latest research report on XOM - FREE
Get the latest research report on CHK - FREE
Get the latest research report on EQT - FREE