Long Position on CHK @ $84.00 on 4/28/2022 (Fundamentals)

Chesapeake Energy Corporation (CHK) is an independent exploration and production company.

The firm engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs in the United States.

The company holds interests in natural gas resource plays in the Marcellus Shale in the northern Appalachian Basin in Pennsylvania and the Haynesville/Bossier Shales in northwestern Louisiana; and the liquids-rich resource play in the Eagle Ford Shale in South Texas.

As of December 31, 2021, it owned interests in approximately 8,200 gross productive wells, including 6,500 wells with working interest and 1,700 wells with an overriding or royalty interest; and had estimated proved reserves of 661 million barrels of oil equivalent. 

Shares are heading higher in an upward trading channel. They are presently at the lower boundary of the said channel which coincides with the stock's 50-day moving average. The company reports May 5th. Russia cut off gas supplies to Poland and Bulgeria yesterday. The move sent natural gas prices to multi-year highs. Higher natural gas prices should help CHK.

Entry Point: $84.00

Trading Range: $45.32 to $97.61

Stop Loss: $80.00

Target Price: $92.50

Updates

5/4/2022 3:46:50 PM

CHK closed at $95.25

Position closed on 5/4/2022 at price of $95.25 with a 13.39% gain in 6 days.

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