Seeking Alpha: Chesapeake Q1 results - exceeds expectations on earnings, cash flow and dividends
Chesapeake Energy (CHK)...
Chesapeake Energy (CHK) reported Q1 results after the close Wednesday, beating Street estimates, generating strong free cash flow, and lifting the shareholder payout to double-digit levels:
Earnings - the Company delivered $3.09 of adjusted earnings per share for the quarter, against Street estimates of $2.43.
Cash flow - Chesapeake (CHK) generated $532m in adjusted free cash flow during the quarter, the best result in Company history, and ~5.1% of its market cap.
Capital allocation - the board announced a variable-plus-base dividend of $2.34 per share (9.8% yield) and initiated a share repurchase program, buying in ~1% of shares outstanding during the quarter.
Guide - adjusted free cash flow guidance was increased 35% to $2.7b (midpoint) and represents a ~25% free cash flow yield.
MarketWatch: Dow ends up over 900 points after Powell pushes back on 75-basis-point Fed hike
U.S. stocks closed sharply higher Wednesday, jumping as Federal Reserve Chair Jerome Powell delivered...
U.S. stocks closed sharply higher Wednesday, jumping as Federal Reserve Chair Jerome Powell delivered remarks following the conclusion of the Fed's two-day policy meeting. The Dow Jones Industrial Average DJIA, +2.81% ended around 932 points higher, or 2.8%, while the S&P 500 SPX, +2.99% climbed about 3% and the Nasdaq Composite COMP, 3.19% jumped about 3.2%, each booking a third straight day of gains, according to preliminary FactSet data. The Fed raised its benchmark interest rate by a half point, as expected, to a range of 0.75% to 1%. During a press conference Wednesday afternoon, Powell said that further rate increases of 50 basis points would be on the table at the next couple of meetings, but the Fed was not actively considering a 75-basis-point hike. The Dow saw its biggest daily gain since November 2020, according to Dow Jones Market Data.
Initially, the Fed plans to reduce its holdings by $47.5 billion a month. After three months the Fed would ramp up to $95 billion a month in asset reductions, a move that could drain liquidity from money markets for years to come.
The central bank as expected lifts its fed funds rate to a range of 0.75% to 1% in what’s expected to be a series of increases. The vote was unanimous.
WTI and Brent crude oil jumped in early trading as the European Union released plans to phase out imports...
WTI and Brent crude oil jumped in early trading as the European Union released plans to phase out imports of Russian energy, offsetting demand worries caused by lockdowns in China.
West Texas Intermediate crude oil for June delivery in the U.S. was up $4.23 at $106.64 a barrelas of 9:42 AM ET.
Global benchmark Brent crude for July delivery rose $4.10 at $109.07 a barrel, also as of 9:42 AM ET.
June natural gas this morning was up46 cents to $8.41 per 1,000 cubic feet.
