Chesapeake (CHK) Rewards Investors With Doubling Buyback Plan


Chesapeake Energy Corporation


CHK

recently announced that it will boost its previously declared share buyback program authorization, reflecting a strong focus on returning capital to stockholders.

The repurchase program will get doubled to $2 billion in aggregate value of its common stock and/or warrants from $1 billion through the end of next year. Chesapeake Energy said that 5.4 million shares of its common stock have been repurchased to date under its previously authorized plan at an average price of roughly $89 per share.

The recent announcement and commitment for base and variable

dividends

reflect Chesapeake Energy’s strong cash flow generation capabilities, especially in the favorable commodity pricing scenario. CHK boosted its disciplined allocation of capital, reflecting its prime focus on shareholder returns.

Currently, Chesapeake Energy carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space are

Antero Resources

(

AR


), Whiting Petroleum


WLL

and

Cheniere Energy, Inc.


LNG

. All the stocks sport a Rank #1 (Strong Buy). You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.

The substantial exposure to improving commodity price is a huge positive for Antero Resources.

Whiting Petroleum is a leading upstream energy company and the top producer of crude oil in North Dakota. With oil prices improving rapidly, Whiting Petroleum is expected to continue generating handsome cash flows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

Prospects for Cheniere Energy look bright since the firm is a leading producer and exporter of liquefied natural gas (LNG) in the domestic market. Cheniere Energy is well-positioned to capitalize on the improving demand for LNG.

In 2022, Cheniere Energy is likely to see earnings growth of more than 260%.


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