5 Best Fuel Stocks to Buy Now

3. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 58

TTM PE ratio as of April 22: 2.42

Chesapeake Energy Corporation (NASDAQ:CHK) is an American energy company with reserves in Marcellus Shale and Haynesville/Bossier Shales. Most of the company’s reserves are of natural gas followed by petroleum and natural gas liquids.

Chesapeake Energy Corporation (NASDAQ:CHK) is one of the best energy stocks as Fitch Ratings upgraded the company’s long-term credit rating to BB+ from BB. S&P Global Ratings still maintains the company’s credit rating of BB but with a “stable” outlook.

On April 18, UBS analyst Josh Silverstein assumed Chesapeake Energy Corporation (NASDAQ:CHK)’s coverage with a Buy rating and price target of $101. The analyst looks at the company’s Eagle Ford assets’ divestitures in a positive light and expects a better cash flow yield in the next couple of years.

Carillon Tower Advisers made the following comment about Chesapeake Energy Corporation (NASDAQ:CHK) in its Q3 2022 investor letter:

“Chesapeake Energy Corporation (NASDAQ:CHK), a natural gas exploration and production company, emerged from bankruptcy with little fanfare in 2021, despite having rid itself of its debt burden and onerous pipeline contracts. The company was able to make two large acquisitions at very reasonable prices within its core producing areas, allowing for scale and cost savings. Then in 2022, natural gas prices began to rise well above expectations, increasing the value of Chesapeake’s large natural gas resources and production and contributing to its outperformance.”