Chesapeake Energy Corp (CHK)

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Chesapeake Energy Corporation (CHK)

When it comes to energy stocks to watch, Chesapeake Energy Corporation (CHK) has to be on the top of the list.

CHK spent much of the second quarter fighting back bankruptcy fears and reducing its large debt profile by selling assets, reducing capex and focusing on the most profitable regions it drills in. Those efforts seem to work as the firm reported better earnings last quarter.

And they could keep on working in the second half of the year.

For starters, rising crude oil and natural gas prices benefit production. Obviously, the more Chesapeake can get for its product, the better its bottom line and cash flows are going to be. And it needs those operational cash flows to continue reducing its debt.

Secondly, the firm continues to reduce capex. By using longer laterals and more frack stages, Chesapeake has been able to reduce its cash cost per well by 28%. This fact will only enhance its profit potential even further.

For investors, the second half of the year will be a make or break point for CHK stock. If things keep going their way, Chesapeake could very well be one of the energy stocks kings again.


Read more at http://investorplace.com/2016/07/10-energy-stocks-watch-2016/#czTYUjdOsc2vffvq.99