Savvy Trades and Investments

[researcher59]

CHK (2.98) might be an interesting play ahead of their earnings report next Wednesday morning ..... the stock rallied 22% on Feb 22nd after their Q4 earnings beat, rising from 2.63 to 3.20 .... Q4 adj EPS of $0.30 easily beat the analysts consensus estimate of $0.24.

Q1 analyst consensus estimate is for EPS of $0.27, but I think they'll beat that ..... they have a very favorable NG hedging position for Q1 at $3.44/mcf for much of their production (according to their Q4 earnings PR). Winter NG futures prices are always higher than the rest of the year due to heating demand, hence the excellent hedge prices.

Partly offsetting the favorable NG hedge position is an unfavorable Oil hedge, but the NG hedge has the greater impact.