NEW YORK, NY / ACCESSWIRE / March 24, 2017 / Two oil and gas exploration companies still in the process of achieving a level of financial stability and growth hope to see the rest of 2017 bring profit to investors. One of the companies received an unexpected buy rating from an investment firm, while the other saw regular quarterly improvement through 2016.
RDI Initiates
Coverage:
Chesapeake Energy
Corporation https://ub.rdinvesting.com/news/?ticker=CHK
Encana Corp. https://ub.rdinvesting.com/news/?ticker=ECA
Chesapeake Energy closed the day at $5.09 a share, up by $0.09. The gain possibly came from news of a "buy" rating issued by analyst Karl Chalabala of Stifel Nicolaus, who made optimistic projections of a 10% increase in Chesapeake revenues by the end of the year, raining its stock value to double from where it sits at the end of today's trading day. The analyst is basing the case on the promise of increased production from the company's shale oil and gas properties, and the restructuring of its debt and asset divestitures. The company held $9.9 billion in debt on $13 billion of total assets as on February 27th of this year. Majority of other analysts are rating Chesapeake as "hold".
In order for the analyst predictions to come true, the price of oil will have to rise and the demand for natural gas will have to increase, both events which investors in the oil and gas industry have been hoping for, but failed to materialize. Just a few weeks ago, analysts noted the very reason for Chesapeake's price decline was those very factors, along with a shaky management structure. Some investors have waited several years for Chesapeake's problems to shake out, and perhaps this is the time when the company may be able to take a giant step forward.
Access RDI's Chesapeake Research Report at: https://ub.rdinvesting.com/news/?ticker=CHK
Encana stock nudged up $0.10 a share on Thursday to close at $10.65. On February 16, the company announced its 4th quarter and full year financial results. It reported that the company grew Non-GAAP Cash Flow on a quarter by quarter basis, although total yearly Non-GAAP cash flow of $838 million for the year 2016 significantly below from Non-GAAP Cash flow of $1,430 million reported in the previous year. The company finished the year 2016 with a view to continued strength in 2017. Cash from operating activities was reported to be $199 million. Also, it lowered its operation costs from drilling and completion from 30% compared to the same reporting period in 2015. Company debt was reduced by more than 50% from 2014, and full-year GAAP cash from operating activities reached $625 million.
Access RDI's Encana Research Report at: https://ub.rdinvesting.com/news/?ticker=ECA
Our Actionable Research on Chesapeake Energy Corporation (NYSE: CHK) and Encana Corp. (NYSE: ECA) can be downloaded free of charge at Research Driven Investing.
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Disclaimer: This article is written by an independent contributor of RDInvesting.com and reviewed by Hemal K. Gandhi, a CFA® charter holder. RDInvesting.com is neither a registered broker dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.
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SOURCE: RDInvesting.com
Source: ACCESSWIRE
(March 24, 2017 - 9:31 AM EDT)
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