One negative detraction from the bull case is that CHK is substantially hedged for the remainder of 2022. Indeed, CHK's management noted during a recent conference call that one of CHK's biggest troubles is figuring out how to best return capital to shareholders, calling it an ''awesome problem''. But that may not be a significant detraction from this bull case.Ĭhesapeake Energy Corporation (NASDAQ:CHK) is a natural gas company that's very cheaply valued.Įarnestly, it's difficult not to be bullish on this name, when the main topic of discussion is not whether or not investors will get a good yield, but in what form will the total yield arrive. I suspect that Chesapeake will be active in hedging out its 2023 book. In jest, management admits that this is a good problem to have.Ĭhesapeake Energy is priced at approximately 6x this year's free cash flow.
What's the best way to return capital to shareholders? This is ''the main problem''. Chesapeake Energy: Rosy Future, Yet Nobody CaresĬhesapeake Energy is flying under the radar of a lot of investors, while it faces a serious problem.
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