5 Most Undervalued Natural Gas Stocks To Buy According To Hedge Funds

3. Chesapeake Energy Corporation (NASDAQ:CHK)

Number of Hedge Fund Holders: 70

P/E Ratio as of January 20: ​​5.60

Chesapeake Energy Corporation (NASDAQ:CHK) is an Oklahoma-based independent exploration and production company, engaged 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. On January 19, Chesapeake Energy Corporation (NASDAQ:CHK) announced its agreement to sell assets in the Brazos Valley region of the Eagle Ford shale to WildFire Energy for $1.425 billion, which will potentially be the first of multiple sales of the company’s Eagle Ford position. Chesapeake Energy Corporation (NASDAQ:CHK) is one of the most undervalued natural gas stocks to buy according to hedge funds. 

On January 19, Credit Suisse analyst William Janela trimmed the firm’s price target on Chesapeake Energy Corporation (NASDAQ:CHK) to $130 from $135 after the company announced that it will sell its Eagle Ford Brazos Valley assets for $1.425 billion in cash. The analyst maintained an Outperform rating on the shares.

According to Insider Monkey’s Q3 data, Chesapeake Energy Corporation (NASDAQ:CHK) was part of 70 hedge fund portfolios, compared to 67 in the prior quarter. Howard Marks’ Oaktree Capital Management is the biggest stakeholder of the company, with 9.80 million shares worth $923.25 million. 

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.”