Chesapeake Energy Set For Organic FCF Generation: Analyst Predicts Strong Hedge Gains
Portfolio Pulse from Lekha Gupta
Benchmark analyst Subash Chandra has lowered the price target for Chesapeake Energy Corp (NASDAQ:CHK) from $107 to $93, while maintaining a Buy rating. The price target cut reflects weak gas and NGL prices and the EF asset sales. Chandra expects a strong quarter for CHK's gas production, with Haynesville volumes projected to negate the impact of declining Marcellus volumes. The analyst also expects CHK's balance sheet to benefit from the 2nd EF black oil sale proceeds and projects significant hedge gains of over $200 million.
July 17, 2023 | 4:53 pm
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Chesapeake Energy Corp's price target has been lowered by Benchmark analyst Subash Chandra due to weak gas and NGL prices and EF asset sales. However, a strong quarter is expected for CHK's gas production.
The lowering of the price target for Chesapeake Energy Corp by Benchmark analyst Subash Chandra is due to weak gas and NGL prices and EF asset sales. This could negatively impact the stock price in the short term. However, the expectation of a strong quarter for CHK's gas production could offset this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100