The uncertainty in the energy and oil market has proven to be a problem for many energy stocks, and in that regard, Chesapeake Energy Corporation (NYSE:CHK) is no exception. In 2019, CHK stock has lost as much as 28%, but this week the company is going to release its third-quarter results, and investors could well get some reason for cheer.
Here is a look at some of the things that investors would need to watch this week with regards to Chesapeake Energy and its third-quarter results due tomorrow.
Key Metrics to Watch
One of the most important things that investors should watch is the company’s oil production levels for the quarter. At the end of the day, it is one of the most important factors with regards to an energy company. Moreover, Chesapeake acquired WildHorse Resource Development to further boost its oil production, and in Q2 2019, its production rose by as much as 36% year-on-year. The company expects to boost production by 32% for the full year, and it will be worthwhile to keep an eye out for what happens in the Q3 2019 results.
CHK stock is up 8% at $1.56 in the morning session on Monday.
The other important thing to watch out for is whether Chesapeake Energy is successful in reducing costs in the third quarter. The acquisition of WildHorse was supposed to address that, and the company had projected savings in the $200 million to $280 million range.
However, later on, it revised that range to be between $250 million to $280 million. The company expects costs to be $8.53 per barrel in the third quarter, and that would reflect a 13% reduction from the previous quarter.
Last but not least, the projections made by Chesapeake for 2020 are also going to be a vital factor in CHK stock performance in the near-term. Analysts believe that the company is poised to post solid numbers, and they expect the company to be on track with expectations.
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