Connect with us

Hi, what are you looking for?


Chesapeake Energy stock has ‘tremendous upside’ despite falling natural gas prices

Natural gas prices have tanked sharply to around $3.75 in less than a month. Still, Chesapeake Energy Corporation (NASDAQ: CHK) CEO does not expect that to be a threat for his company.

Price of natural gas is still profitable

According to Nick Dell’Osso, natural gas is still trading at a price that’s well above what’s typically seen as “bad” for the industry. Therefore, he’s convinced that Chesapeake Energy will remain strongly profitable moving forward.  

For us to be around $4.0 is still a great price for our company. We still see a huge future for natural gas as the supply and demand fundamentals are tremendous for the long term. So, we’re excited about the price today.

The Nasdaq-listed firm is expected to report its Q4 results in February. Consensus is for it to earn $3.61 a share this quarter – a more than 50% growth on a year-over-year basis.

Wall Street currently has a consensus “buy” rating on the Chesapeake Energy stock.

CEO’s outlook on the Chesapeake Energy stock

Dell’Osso sees significant upside in natural gas prices in 2025 and beyond. This year, though, he expects the commodity to remain around the current level (near $4.0).

Over the past two months, Chesapeake Energy stock has lost roughly 15%. Sharing his outlook on the share price, the Chief Executive said on CNBC’s “Squawk Box”:

If you look at the price that’s implied in our stock, it’s always been in the $3.0s at best; low-threes. So, we still think there’s a tremendous amount of upside to our stock price in the current natural gas environment.

On average, Wall Street expects this natural gas stock to be worth $144. That implies about a 70% premium on its current price.

The post Chesapeake Energy stock has ‘tremendous upside’ despite falling natural gas prices appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.