NEW YORK (TheStreet) -- Chesapeake Energy (CHK - Get Report) was gaining 1% to $29.59 Thursday following the announcement that Rose Rock Midstream (RRMS) will acquire the company's transportation assets.
Rose Rock Midstream will acquire Chesapeake's crude oil trucking assets, including 124 trucks, 122 trailers, and other equipment in Texas, Oklahoma, and Ohio, and about 200 employees. The deal is expected to close sometime in the second quarter.
Must read: Warren Buffett's 25 Favorite Stocks
- The revenue growth greatly exceeded the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 47.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- CHESAPEAKE ENERGY CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CHESAPEAKE ENERGY CORP turned its bottom line around by earning $0.68 versus -$1.62 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $0.68).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 632.8% when compared to the same quarter one year prior, rising from $58.00 million to $425.00 million.
- Net operating cash flow has increased to $1,291.00 million or 39.71% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 17.46%.
- Powered by its strong earnings growth of 2600.00% and other important driving factors, this stock has surged by 27.94% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: CHK Ratings Report