Chesapeake Energy Corporation (CHK): Could LNG Be the Catalyst Investors are Waiting For

Chesapeake Energy Corporation (NYSE:CHK) has been a money loser for investors but analysts think that the stock could gain value because the company will face a massive surge in the demand of natural gas. Chesapeake is the second largest gas company in the US.

Analysts think that the company is in a strong position to leverage the surge of gas exports because its gas facilities, including Texas Eagle Ford Shale plant and Haynesville Shale plant in western Louisiana, are located so that it becomes easier for Chesapeake to export gas to Mexico and all over the world. Chesapeake has plans to increase its gas production by a whopping 5%-15% every year through 2020.

Over the current book year the total revenue will be 9,53 billion USD (consensus estimates). This is hugely more than 2016's revenue of 7,87 billion USD.

Historical revenues and results Chesapeake Energy plus estimates 2017

financial analysis

The analysts expect for 2017 a net profit of 686 million USD. For this year most of the analysts expect a profit per share of 76 cent. With this the price/earnings-ratio is 5,26.

For this year analysts don't expect the company to pay a dividend.The average dividend yield of the energy companies equals a moderate 0,46 percent.

Based on the current number of shares Chesapeake Energy's market capitalization equals 2,65 billion USD.

On Friday the stock closed at 4 USD.

Historical stock prices Chesapeake Energy

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