Happy New Year's Eve, everyone! I just had my first SeekingAlpha article published in over a year; I hope you all enjoy it!
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For many
investors, Chesapeake Energy (CHK) needs no introduction. Under its founder
Aubrey McClendon, the company pioneered the use of fracking to extract oil and
natural gas from shale deposits. Later, in June 2020, the company went
bankrupt. The company exited bankruptcy in February 2021 and its stock has
risen since then by around 40%.
Historically,
post-bankruptcy stocks have outperformed the
market,
which makes Chesapeake Energy’s stock interesting. To see if it might
outperform the market, we need to know if the company is undervalued. We can
know that by looking at its oil and gas reserves, which are the company’s
ultimate source of value. If Chesapeake is trading at less than the value of
its reserves, its stock may outperform in the future. (Read More)
