Morningstar Rating

Stock Research and Analysis

by Mark Hanson, CFA

Bulls Say

Chesapeake's large acreage positions in almost every major U.S. resource play should support production and reserve growth throughout our forecast period.
Chesapeake is resilient if nothing else. The firm managed to survive near-collapses in the late 1990s, 2008, and 2012 in part through its knack for creative fundraising. We expect Chesapeake to employ asset sales to help fund future spending.
With the potential for U.S. natural gas prices to remain depressed for the next few years, Chesapeake's shift to a more liquids-rich portfolio should help improve the firm's economic profile. Read more 

Bears Say

Inability to locate buyers for future asset sales could force the company to issue equity or sell assets at below-market rates to help fund operations.
With the unconventional acreage rush in the U.S. now largely over, it remains to be seen whether Chesapeake can successfully operate under a more traditional E&P company model.
With two thirds of its production volume coming from natural gas throughout our forecast period, Chesapeake will remain heavily leveraged to gas prices for the next several years. Read more 


Until his departure in April 2013, Chesapeake was led by CEO Aubrey McClendon, one of the most visible and controversial personalities in U.S. E&P. McClendon was effectively forced out following a series of questionable personal and professional   Read more 


Chesapeake Energy, based in Oklahoma City, explores for, produces, and markets natural gas, oil, and natural gas liquids in the U.S. It focuses on unconventional plays,   Read more 

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