Earnings Results Analysis: Chesapeake Energy Corporation (NYSE: CHK)

On Monday, Shares of Chesapeake Energy Corporation (NYSE: CHK) dropped -3.21% to $3.46. The stock grabbed the investor’s attention and traded 13,508,051 shares as compared to its average daily volume of 28.88M shares. The stock’s institutional ownership stands at 60.50%.

Chesapeake Energy Corporation (CHK) recently stated financial and operational results for the 2018 third quarter.

2018 Third Quarter Results:

For the 2018 third quarter, Chesapeake stated net income of $85.0M and net income available to common stockholders of $60.0M, or $0.07 per diluted share.  The company’s EBITDA for the 2018 third quarter was $504.0M. Adjusting for items that are typically excluded by securities analysts, the 2018 third quarter adjusted net income attributable to Chesapeake was $174.0M, or $0.19 per diluted share, while the company’s adjusted EBITDA was $594.0M.

Capital Spending Overview:

Chesapeake incurred total capital expenditures, counting capitalized interest of $42.0M, of about $619.0M during the 2018 third quarter, contrast to about $692.0M in the 2017 third quarter.

Balance Sheet and Liquidity:

As of September 30, 2018, Chesapeake’s principal amount of debt outstanding was about $9.8620B, contrast to $9.9810B as of December 31, 2017. Also as of September 30, 2018, the company had $645.0M of outstanding borrowings and $182.0M for various letters of credit under its senior secured revolving credit facility resulting in about $2.20B of available liquidity under the facility.

On September 27, 2018, the company issued $1.250B of senior notes, consisting of $850.0M of 7.00% senior notes due 2024 and $400.0M of 7.50% senior notes due 2026. Chesapeake used the net proceeds from the offering, together with borrowings under its revolving credit facility, to repay its secured term loan due 2021 which carried a floating interest rate equating to about 9.60%, in its entirety. The impact of this refinancing is projected to result in cash interest expense savings of about $30.0M in 2019.

CHK has a market value of $3.27B while its EPS was booked as $0.62 in the last 12 months. The stock has 913.72M shares outstanding. In the profitability analysis, the company has gross profit margin of 78.10% while net profit margin was 6.10%. Beta value of the company was 1.99; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 3.20.

Chad Pitman

Chad Pitman

I am Chad Pitman and I focus on breaking news stories and ensuring we (“Stocks Market Cap”) offer timely reporting on some of the most recent stories released through market wires about “Emerging Stocks”. I have formerly spent over 3 years as a trader in U.S. Stock Market and is now semi-stepped down. I work on a full time basis for stocksmarketcap.com specializing in quicker moving active shares with a short term view on investment opportunities and trends.

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