2024-03-06 05:19:31 ET
Summary
- Chesapeake Energy reported solid Q4 results in February that beat expectations.
- Before Q4'23, Chesapeake Energy and Southwestern Energy announced a merger to create one of the largest natural gas-focused energy businesses in North America.
- The merger is expected to result in annual savings of $400M and higher capital (dividend) returns for investors.
- Shares are likely fairly valued here and I see limited revaluation potential in 2024.
Chesapeake Energy ( CHK ) reported much better than expected earnings for its fourth-quarter in December, although the energy firm saw lower revenues in a lower-price world. Chesapeake Energy generated a ton of profits in FY 2023 and the recently announced merger with Southwestern Energy Company ( SWN ) is set to create one of the largest natural gas-focused energy businesses in North America. The new energy company is expected to become the third-largest natural gas company in the world with the transaction also being attractive from a synergy point of view. I believe shares of Chesapeake Energy are a solid hold here, with valuation being a potential concern for me as a growth investor!...
Read the full article on Seeking Alpha
For further details see:
Chesapeake Energy: Limited Upside In 2024