5 Million Shares Think Chesapeake Energy Has Bottomed
Is this energy stock going to turn into an oil barrel of fun?
December 2018 will go down as one of the worst months for most stocks – but it’s fair to say nobody had it as bad as Chesapeake Energy Corporation (NYSE: CHK).
As a quick summary, Chesapeake Energy has estimated proved reserves of 1.116 billion barrels of oil equivalent – plus interests in approximately 17,300 oil and natural gas wells throughout the United States, including…
- Natural gas interests in the Haynesville and Bossier Shales in northwestern Louisiana and east Texas
- The Marcellus Shale in the northern Appalachian Basin in Pennsylvania
- The Eagle Ford Shale in South Texas
- The Utica Shale in Ohio
- The Anadarko Basin in western Oklahoma
- And the Powder River Basin in Wyoming.
With that in mind, when you combine a brutal market sell-off with a 30% decline in the price of natural gas, which came during the winter months when natural gas demand is the highest in North America, it’s no shock to learn that shares of Chesapeake Energy fell 28.1% in December.
But according to the buying patterns of Chesapeake Energy insiders, the worst might be over.
Chesapeake Energy has seen a total of 16 insider transactions over the last six months, totaling purchases of 5,168,341 shares.
During this same time frame, zero insider sales have been logged.
Could this explain why Chesapeake Energy just bounced from a 52-week low of $1.71 up to current levels around $2.40? It’s very possible that the answer is yes. Is there more to come? Once again, the answer could be yes as well!
Nobody on the inside is selling yet, which indicates there’s something brewing. If those on the inside have indeed timed the Chesapeake Energy bottom, this is something you may want to jump on board with as well.