Below please find a table outlining a discounted cash flow forecast for CHKAQ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Chesapeake Energy Corp ranked in the 19th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Chesapeake Energy Corp, consider:
The company's balance sheet shows it gets 0% of its capital from equity, and 100% of its capital from debt. Notably, its equity weight is greater than merely 0.57% of US equities in the Energy sector yielding a positive free cash flow.
Its compound free cash flow growth rate, as measured over the past 5.52 years, is -0.49% -- higher than merely 2.65% of stocks in our DCF forecasting set.
Chesapeake Energy Corp's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -20.73. This coverage rate is greater than that of only 5.2% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
PUMP, HFC, TGA, FTI, and RDS.A can be thought of as valuation peers to CHKAQ, in the sense that they are in the Energy sector and have a similar price forecast based on DCF valuation.
Chesapeake Energy's (CHKAQ) Chapter 11 reorganization plan was approved by the U.S. bankruptcy court in Houston today, giving lenders control of the company and ending a contentious trial.The judge dismissed arguments from some unsecured creditors that Chesapeake already had designed a 2019 debt restructuring and delayed its filing to improperly...
(Bloomberg) -- Chesapeake Energy Corp. won court approval for a reorganization plan that slashes about $7 billion in debt in exchange for handing over ownership to its senior lenders, including Franklin Resources Inc.The decision by U.S. Bankruptcy Judge David Jones caps a years-long effort to repair the company’s finances, which became bloated after repeated borrowing to fuel its expansion.The final push came over the objection of unsecured bondholders and other lower-ranking creditors, who claim senior lenders were getting Chesapeake at a discount just six months after they refinanced their debt.Jones rejected those complaints along with a last-minute, competing reorganization proposal offered by Jefferies Financial Group Inc., Owl Creek Asset Management and several other investment f...
In this article, we are going to list the 15 largest gas companies in the US. Click to skip ahead and jump to the 5 largest gas companies in the US. Natural gas is fossil energy produced from decomposed organic matter, generally from ancient marine microorganisms that have been deposited over the last 550 million […]
When we look back on 2020, one of the year’s defining features will be the unprecedented interest in the stocks of bankrupted companies. Normally, when a company goes bust, its stock price goes to almost zero immediately and that’s that. This year, however, traders have stuck with firms in bankruptcy far longer than normal. Chesapeake Energy (OTCMKTS:CHKAQ) stock is one example of that trend.
Source: Casimiro PT / Shutterstock.com
Chesapeake filed for bankruptcy back in June of this year, ending its long struggle to restructure as much as $10 billion of debt by less dramatic means. However, the one-two punch of plunging oil prices and the novel coronavirus was too much for the embattled firm to withstand.
Chesapeake Energy Stock Is Heading to Zero
Normally, it’s a bit hyperbolic when...
As it turns out, buying Whiting Petroleum (NYSE:WLL) stock in bankruptcy wasn't a great deal. Between shares of the "new" WLL stock and warrants, early trading suggests that pre-bankruptcy prices were too high, even after a big pullback.Source: Shutterstock Whiting was a better story than Hertz (NYSE:HTZ) is likely to be, but that's clearing a low bar: HTZ remains a longshot bet on a massive recovery in used car prices.Investors were wise to stay away. Former shareholders only are getting about 3% of the company; bondholders are getting the rest. Warrants have some value, but even accounting for that value pre-bankruptcy shareholders paid too much.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut the same won't necessarily be true going forward. The bankruptcy process si...