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Chesapeake Energy (Chesapeake Energy) Financial Strength : 8 (As of Mar. 2024)


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What is Chesapeake Energy Financial Strength?

Chesapeake Energy has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Chesapeake Energy Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Chesapeake Energy's Interest Coverage for the quarter that ended in Mar. 2024 was 2.52. Chesapeake Energy's debt to revenue ratio for the quarter that ended in Mar. 2024 was 0.49. As of today, Chesapeake Energy's Altman Z-Score is 3.46.


Competitive Comparison of Chesapeake Energy's Financial Strength

For the Oil & Gas E&P subindustry, Chesapeake Energy's Financial Strength, along with its competitors' market caps and Financial Strength 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's Financial Strength Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Chesapeake Energy's Financial Strength distribution charts can be found below:

* The bar in red indicates where Chesapeake Energy's Financial Strength falls into.



Chesapeake Energy Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Chesapeake Energy's Interest Expense for the months ended in Mar. 2024 was $-21 Mil. Its Operating Income for the months ended in Mar. 2024 was $53 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $2,025 Mil.

Chesapeake Energy's Interest Coverage for the quarter that ended in Mar. 2024 is

Interest Coverage=-1*Operating Income (Q: Mar. 2024 )/Interest Expense (Q: Mar. 2024 )
=-1*53/-21
=2.52

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Chesapeake Energy's Debt to Revenue Ratio for the quarter that ended in Mar. 2024 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2024 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(61 + 2025) / 4292
=0.49

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Chesapeake Energy has a Z-score of 3.46, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 3.46 is strong.

* 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.


Chesapeake Energy  (NAS:CHK) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Chesapeake Energy has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


Chesapeake Energy Financial Strength Related Terms

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


Chesapeake Energy (Chesapeake Energy) Business Description

Traded in Other Exchanges
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 on areas of Marcellus, Northern Appalachian Basin in Pennsylvania; Haynesville, Northwestern Louisiana (Gulf Coast); and Eagle Ford, South Texas.
Executives
Michael Wichterich director C/O EXTRACTION OIL & GAS, 370 17TH STREET, SUITE 5300, DENVER CO 80202
Dell'osso Domenic J Jr officer: Exec. Vice President & CFO 6100 N. WESTERN AVE., OKLAHOMA CITY OK 73118
Joshua J. Viets officer: EVP & COO 6100 N. WESTERN AVENUE, OKLAHOMA CITY OK 73118
Blackstone Holdings Iii L.p. 10 percent owner C/O BLACKSTONE INC., 345 PARK AVENUE, NEW YORK NY 10154
Bx Vine Intermediate Holdco L.p. 10 percent owner 345 PARK AVENUE, NEW YORK NY 10154
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 (pub) Aggregator 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
Gregory M. Larson officer: VP-Accounting & Controller 6100 N. WESTERN AVENUE, OKLAHOMA CITY OK 73118
Mohit Singh officer: EVP & CFO 6100 N. WESTERN AVENUE, OKLAHOMA CITY OK 73118