Chesapeake Energy Corporation NYSE:CHK Sells its Shale Gas Fields | Inside Trade

Chesapeake Energy Corporation NYSE:CHK has sold a package of shale gas fields in the eastern US for about $5.38bn, at a price that was significantly higher than analysts had expected.It has agreed a deal with Southwestern Energy, another US gas producer, to sell drilling rights on 413,000 acres of land in the Marcellus and Utica shales of Pennsylvania and West Virginia.Chesapeake Energy Equity AnalysisChesapeake Energy Corporation NYSE:CHK opened trading today as $19.45 and is trading in the range of 19.19-21.00 today. Chesapeake Energy’s current market cap stands at $13.53 billion.Compared to other peers in the Energy sector, CHK hasn’t performed in terms of quarterly revenue growth year over year at 0.10 vs. the industry average of 0.13. Chesapeake Energy’s earnings per share is currently at .79.Chesapeake Energy is currently covered by 30 Wall Street analysts. The mean target price is $29.30 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.7 which is based on 5 Strong Buy, 2 Buy and 22 Hold ratings.The most recent analyst actions consisted of Stifel upgrading the stock on August 7th and Howard Weil downgrading with a sector outperform rating back in February.The current quarter EPS consensus estimate is .35 with revenue estimates of 4.88B. Sales are expected to grow at a 0.20% rate. Chesapeake Energy reported actual earnings last quarter of 0.36 which fails beat the .44 consensus estimate, a -18.20% surprise.Corporate ProfileChesapeake Energy Corporation NYSE:CHK is engaged in the acquisition, exploration, and development of properties for the production of natural gas, oil, and natural gas liquids NGL from underground reservoirs in the United States. The company operates in three segments: Exploration and Production; Marketing, Gathering, and Compression; and Oilfield Services. It holds interests in natural gas resource plays, including the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas. The company also holds interests in liquids-rich resource plays, such as the Eagle Ford Shale in South Texas; the Utica Shale in Ohio and Pennsylvania; the Granite Wash/Hogshooter, Cleveland, Tonkawa, and Mississippi Lime plays in the Anadarko Basin in northwestern Oklahoma, the Texas Panhandle, and southern KansasSHARE THIS POST

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