Chesapeake Energy (CHK) Stock Rises as U.S. Oil Prices Climb

NEW YORK (TheStreet) -- Shares of Chesapeake Energy  (CHK) rose 4.72% to $15.19 in late afternoon trading Friday as U.S. oil prices rose.

WTI crude rose 0.66% to $59.33 at 3:17 p.m. as oilfield services firm Baker Hughes (BHI) announced that the U.S. oil rig count declined for the 22nd consecutive week, according to Reuters.

The number of crude drilling rigs in U.S. oilfields dropped by 11 last week, bringing the total to 668 rigs, less than half of the 1,528 at the same time last year.

In addition, the April U.S. job report released Friday also boosted U.S. crude prices.

Nonfarm payrolls increased 223,000 in April, despite the fact that March payrolls were revised down to just 85,000.

Insight from TheStreet's Research Team

Jared Woodard commented on Chesapeake Energy in a recent post on Options Profits. Here's what he had to say about the stock:

It was easy to get whiplash this week. The long volatility call we and others have been making for the past several weeks paid off, but you certainly had to be nimble. While non-farm payrolls didn't change the basic outlook, they were good enough to reverse losses in stocks from earlier in the week.

On Monday, we looked at two ideas to take advantage of inexpensive options in the financial sector with the Financial Select Sector SPDR Fund (XLF).

There were some interesting block orders that came across on Tuesday in Altera  (ALTR), Chesapeake Energy, and Petrobras  (PBR). On Wednesday, it looks like we correctly called the turn in the iShares 20+ Year Treasury Bond ETF (TLT) via a short put spread.

Finally, we flagged a very good paper on Thursday looking at market structure, market-making, and High-Frequency Trading. Good weekend reading, if you didn't get time for it during the week.

Economic data next week is on the light side, and with evidence now that we are nearing full employment, with wages rising and no apparent macroeconomic risk here or in the rest of the developed world, our outlook for expansion in the real economy, stagnant year-end returns in financial markets, and a Fed liftoff in September is intact.

- Jared Woodard, 'Jared Woodard Analysis: Weekly Position and Market Recap' originally published 5/8/2015 on Options Profits

Want more information like this from Jared Woodard BEFORE your stock moves? Learn more about Options Profits now!

Separately, TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHESAPEAKE ENERGY CORP (CHK) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."

You can view the full analysis from the report here: CHK Ratings Report

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