Chesapeake Energy Corp (CHK)

[dwms07]

bud, SWN is also heavily daytraded. It has a habit of selling off deep on a small drop in natgas price, but it usually comes back in the afternoon. I doubled my position in SWN today and lowered my average price to $9.74.

I believe SWN has a much better chance of hitting $13 before CHK touches and holds above $8. But it is volatile. I daytraded it for 6 months a few years ago. I got discussed with all the jumping around and went to CHK. A few weeks later it ran up 75%... crapola, another run up I missed.

Here's the way I compare the two stocks:

SWN verses CHK when compared to natgas prices!


~89.0% of SWN's revenue/production is from natgas. 9.5% is from NGL. 1.5% of SWN's revenue is crude. This means that increasing natural gas prices have an immediate impact on SWN share price.

CHK does not release a breakdown of their revenue stream. We know that it daytrades heavily on crude prices and will collapse if crude settles back.


SWN

Total Cash (mrq): 1.5 Billion
Total Cash Per Share (mrq): $3.02
Total Debt (mrq): 4.66B
Total Debt/Equity (mrq): 414.96%
Current Ratio (mrq): 2.91
Book Value Per Share (mrq): 2.30
Medium 1 yr price target: 13.00
Beta 1.44


CHK

Total Cash (mrq): 4 Million
Total Cash Per Share (mrq): $0.01 (one penny)
Total Debt (mrq): 9.68B debt is double SWN
Total Debt/Equity (mrq): 814.00% ratio is double SWN
Current Ratio (mrq): 0.30 greater in SWN
Book Value Per Share (mrq): -$5.52 (minus) per share
Medium 1 yr price target 8.00
Beta 2.36 -- CHK more volatile

Worse Case Scenario:

If the economy gets in trouble under Trump, oil prices will tumble far more than natgas. CHK will likely crash under far too much debt. SWN has a 100% better chance to survive.