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Chesapeake Energy Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chesapeake Energy has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Chesapeake Energy's Piotroski F-Score or its related term are showing as below:

CHK' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 5   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Chesapeake Energy was 8. The lowest was 2. And the median was 5.


Chesapeake Energy Piotroski F-Score Historical Data

The historical data trend for Chesapeake Energy's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Chesapeake Energy Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 3.00 4.00 3.00

Chesapeake Energy Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 3.00 2.00 6.00

Competitive Comparison

For the Oil & Gas E&P subindustry, Chesapeake Energy's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Chesapeake Energy Piotroski F-Score Distribution

For the Oil & Gas industry and Energy sector, Chesapeake Energy's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Chesapeake Energy's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was -345 + 0 + -764 + 1237 = $128 Mil.
Cash Flow from Operations was 0 + 0 + 853 + 909 = $1,762 Mil.
Revenue was 887 + 0 + 656 + 3499 = $5,042 Mil.
Gross Profit was -306 + 0 + -1019 + 1371 = $46 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(6999 + 7326 + 11009 + 13293 + 13899) / 5 = $10505.2 Mil.
Total Assets at the begining of this year (Jun21) was $6,999 Mil.
Long-Term Debt & Capital Lease Obligation was $3,046 Mil.
Total Current Assets was $2,010 Mil.
Total Current Liabilities was $4,241 Mil.
Net Income was -745 + -416 + 0 + -439 = $-1,600 Mil.

Revenue was 959 + 1219 + 0 + 691 = $2,869 Mil.
Gross Profit was -38 + 222 + 0 + -399 = $-215 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(6553 + 6903 + 6584 + 6904 + 6999) / 5 = $6788.6 Mil.
Total Assets at the begining of last year (Jun20) was $6,553 Mil.
Long-Term Debt & Capital Lease Obligation was $1,261 Mil.
Total Current Assets was $1,354 Mil.
Total Current Liabilities was $1,866 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chesapeake Energy's current Net Income (TTM) was 128. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Chesapeake Energy's current Cash Flow from Operations (TTM) was 1,762. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=128/6999
=0.01828833

ROA (Last Year)=Net Income/Total Assets (Jun20)
=-1600/6553
=-0.24416298

Chesapeake Energy's return on assets of this year was 0.01828833. Chesapeake Energy's return on assets of last year was -0.24416298. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Chesapeake Energy's current Net Income (TTM) was 128. Chesapeake Energy's current Cash Flow from Operations (TTM) was 1,762. ==> 1,762 > 128 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=3046/10505.2
=0.28995164

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=1261/6788.6
=0.18575259

Chesapeake Energy's gearing of this year was 0.28995164. Chesapeake Energy's gearing of last year was 0.18575259. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=2010/4241
=0.47394482

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=1354/1866
=0.72561629

Chesapeake Energy's current ratio of this year was 0.47394482. Chesapeake Energy's current ratio of last year was 0.72561629. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Chesapeake Energy's number of shares in issue this year was 149.532. Chesapeake Energy's number of shares in issue last year was 97.931. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=46/5042
=0.00912336

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=-215/2869
=-0.074939

Chesapeake Energy's gross margin of this year was 0.00912336. Chesapeake Energy's gross margin of last year was -0.074939. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=5042/6999
=0.72038863

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=2869/6553
=0.43781474

Chesapeake Energy's asset turnover of this year was 0.72038863. Chesapeake Energy's asset turnover of last year was 0.43781474. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Chesapeake Energy has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Chesapeake Energy  (NAS:CHK) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Chesapeake Energy Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Chesapeake Energy's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Chesapeake Energy Business Description

Chesapeake Energy logo
Address
6100 North Western Avenue, Oklahoma City, OK, USA, 73118
Chesapeake Energy Corp is a US-based exploration and production company. It is engaged in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids from underground reservoirs. Geographically, the company focuses its exploration, development, acquisition, and production efforts in the operating areas of Marcellus, Northern Appalachian Basin in Pennsylvania; Haynesville, Northwestern Louisiana (Gulf Coast); Eagle Ford, South Texas; Powder River Basin, Stacked pay in Wyoming; and Brazos Valley - Southeast Texas.
Executives
Bx Vine Ml Holdco Gp L.l.c. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Bx Vine Ml Holdco L.p. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Bx Vine Intermediate Holdco L.p. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Brookfield Us Inc. 10 percent owner BROOKFIELD PLACE 250 VESEY STREET, 15TH FLOOR NEW YORK NY 10281-1023
Bam Partners Trust 10 percent owner 181 BAY STREET SUITE 300 TORONTO A6 M5J 2T3
Ocm Xi Chk Holdings, Llc 10 percent owner 333 S. GRAND AVE. 28TH FLOOR LOS ANGELES CA 90071
Ocm Xb Chk Holdings, Llc 10 percent owner 333 S. GRAND AVE. 28TH FLOOR LOS ANGELES CA 90071
Brookfield Public Securities Group Holdings Llc 10 percent owner 250 VESEY STREET 15TH FLOOR NEW YORK NY 10281
Larson Gregory M. officer: VP-Accounting & Controller 6100 N. WESTERN AVENUE OKLAHOMA CITY OK 73118
Viets Joshua J. officer: EVP & COO 6100 N. WESTERN AVENUE OKLAHOMA CITY OK 73118
Singh Mohit officer: EVP & CFO 6100 N. WESTERN AVENUE OKLAHOMA CITY OK 73118
Schwarzman Stephen A 10 percent owner C/O BLACKSTONE INC. 345 PARK AVE NEW YORK NY 10154
Blackstone Group Inc 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Blackstone Group Management L.l.c. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154
Blackstone Holdings Iii L.p. 10 percent owner 345 PARK AVENUE NEW YORK NY 10154

Chesapeake Energy Headlines

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