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Chesapeake's (CHK) Board Authorizes $1B Stock Repurchase

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·3-min read
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  • CL=F
  • CHK
  • WLL
  • CPE
  • CLR

Chesapeake Energy Corporation CHK announced authorizations from its board of directors to buy back up to $1 billion in aggregate value of its common stock and/or warrants. CHK added that the stock repurchases will occur from time to time over the next two years.

The addition of the repurchase program reflects Chesapeake Energy’s strong commitment to returning capital to stockholders, backed by a sound and resilient business model that could sustain its current cashflow over the long term. CHK’s sound business model is being backed by the ability to sail through commodity price volatility, disciplined capital allocation strategy and a pledge of sustaining capital reinvestment rate.

Chesapeake Energy boasted that its projections for cashflows are robust, although commodity prices have been volatile. The company expects to reward stockholders with total cash dividend payment of $800 million to $1 billion next year. The projected dividend combines a base dividend of $1.75 per share and a variable dividend of 50% of free cash flow. Looking at the dividend history, Chesapeake Energy recently increased its quarterly base dividend payment by 27%.

Currently, Chesapeake Energy sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include Whiting Petroleum Corporation WLL, Continental Resources, Inc. CLR and Callon Petroleum Company CPE. While Continental Resources carries a Zacks Rank #2 (Buy), Whiting Petroleum and Callon Petroleum sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Chesapeake Energy Corporation Price

Chesapeake Energy Corporation Price
Chesapeake Energy Corporation Price

Chesapeake Energy Corporation price | Chesapeake Energy Corporation Quote

Whiting Petroleum is a leading upstream energy company and is the top producer of crude oil in North Dakota. With oil price improving at a healthy pace, Whiting Petroleum expects to continue generating handsome cashflows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, WLL has gained 154.7% year to date, outpacing the 90.7% rise of the composite stocks belonging to the industry.

Continental Resources is also a leading upstream energy company, with proven reserves in North Dakota and Oklahoma. The oil inventories of Continental Resources are among the best in the industry.

Headquartered in Oklahoma City, Continental Resources has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Considering the price chart, the company has gained 169.2% so far this year, outpacing the 90.7% improvement of the composite stocks belonging to the industry.

Callon Petroleum is also a leading exploration and production company with a strong presence in prolific unconventional resources that comprise Permian Basin and Eagle Ford Shale play.

CPE has witnessed upward earnings estimate revisions for 2021 in the past 30 days. Looking at the price chart, Callon Petroleum has gained 264.7% year to date, outpacing the 90.7% improvement of the composite stocks belonging to the industry.


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Chesapeake Energy Corporation (CHK) : Free Stock Analysis Report

Continental Resources, Inc. (CLR) : Free Stock Analysis Report

Whiting Petroleum Corporation (WLL) : Free Stock Analysis Report

Callon Petroleum Company (CPE) : Free Stock Analysis Report

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