A Valuation Of Chesapeake Energy Based On Its Reserves

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)