Chesapeake Energy Corporation (CHK) and Enterprise Products Partners L.P. (NYSE:EPD) Comparing side by side

Chesapeake Energy Corporation (NYSE:CHK) and Enterprise Products Partners L.P. (NYSE:EPD) compete with each other in the Independent Oil & Gas sector. We will analyze and compare their risk, analyst recommendations, institutional ownership, profitability, dividends, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Energy Corporation 9.56B 0.42 595.00M 0.62 4.29
Enterprise Products Partners L.P. 36.53B 1.68 4.17B 1.67 15.42

Table 1 shows the gross revenue, earnings per share (EPS) and valuation for Chesapeake Energy Corporation and Enterprise Products Partners L.P. Enterprise Products Partners L.P. appears to has higher revenue and earnings than Chesapeake Energy Corporation. The business that Presently has a lower P/E ratio is considered the more affordable of the two businesses. Chesapeake Energy Corporation’s shares have been trading at lower P/E ratio which means it is currently more affordable than Enterprise Products Partners L.P.

Profitability

Table 2 has Chesapeake Energy Corporation and Enterprise Products Partners L.P.’s return on assets, net margins and return on equity.

Net Margins Return on Equity Return on Assets
Chesapeake Energy Corporation 6.22% -30.5% 4.8%
Enterprise Products Partners L.P. 11.42% 16% 6.5%

Volatility and Risk

Chesapeake Energy Corporation has a 1.95 beta, while its volatility is 95.00% which is more volatile than Standard and Poor’s 500. Enterprise Products Partners L.P.’s 14.00% less volatile than Standard and Poor’s 500 which is a result of the 0.86 beta.

Liquidity

Chesapeake Energy Corporation has a Current Ratio of 0.4 and a Quick Ratio of 0.4. Competitively, Enterprise Products Partners L.P.’s Current Ratio is 0.7 and has 0.5 Quick Ratio. Enterprise Products Partners L.P.’s better ability to pay short and long-term obligations than Chesapeake Energy Corporation.

Dividends

Enterprise Products Partners L.P. also pays out annual dividends at $1.73 per share and at a 6.2% dividend yield. Chesapeake Energy Corporation does not pay a dividend.

Analyst Ratings

Chesapeake Energy Corporation and Enterprise Products Partners L.P. Recommendations and Ratings are available in the next table.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Chesapeake Energy Corporation 1 3 2 2.33
Enterprise Products Partners L.P. 0 1 8 2.89

Chesapeake Energy Corporation’s upside potential currently stands at 87.55% and an $4.67 consensus target price. Meanwhile, Enterprise Products Partners L.P.’s consensus target price is $32.67, while its potential upside is 16.43%. Based on the results shown earlier, Chesapeake Energy Corporation is looking more favorable than Enterprise Products Partners L.P., analysts view.

Institutional & Insider Ownership

The shares of both Chesapeake Energy Corporation and Enterprise Products Partners L.P. are owned by institutional investors at 60.6% and 37.8% respectively. About 0.8% of Chesapeake Energy Corporation’s share are held by insiders. Comparatively, Enterprise Products Partners L.P. has 0.2% of it’s share held by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Chesapeake Energy Corporation -9.25% -28.76% -35.05% -46.14% -28.38% -33.08%
Enterprise Products Partners L.P. -1.9% -5.09% -10.65% -12.77% 5.97% -1.3%

For the past year Chesapeake Energy Corporation’s stock price has bigger decline than Enterprise Products Partners L.P.

Summary

On 16 of the 16 factors Enterprise Products Partners L.P. beats Chesapeake Energy Corporation.

Chesapeake Energy Corporation engages in the acquisition, exploration, and development of properties for the production of oil, natural gas, and natural gas liquids (NGL) from underground reservoirs in the United States. It operates in two segments, Exploration and Production; and Marketing, Gathering, and Compression. The company holds interests in natural gas resource plays, including the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin in Pennsylvania. It also holds interests in liquids-rich resource plays, such as the Eagle Ford Shale in South Texas; the Utica Shale in Ohio; the Anadarko Basin in northwestern Oklahoma; and the stacked pay in the Powder River Basin in Wyoming. The company owns interests in approximately 22,700 oil and natural gas wells. As of December 31, 2016, it had estimated proved reserves of 1.708 billion barrels of oil equivalent. The company also provides oil, natural gas, and NGL marketing services comprising commodity price structuring, securing and negotiating gathering, hauling, processing and transportation, contract administration, and nomination services for Chesapeake-operated wells; and marketing services for third-party producers, as well as designs, engineers, fabricates, installs, and sells natural gas compression units, accessories, and equipment used in the production, treatment, and processing of oil and natural gas. Chesapeake Energy Corporation was founded in 1989 and is headquartered in Oklahoma City, Oklahoma.

Enterprise Products Partners L.P. provides midstream energy services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, petrochemicals, and refined products. The company operates through NGL Pipelines & Services, Crude Oil Pipelines & Services, Natural Gas Pipelines & Services, and Petrochemical & Refined Products Services segments. The NGL Pipelines & Services segment offers natural gas processing and related NGL marketing services, as well as NGL export docks and related services. It operates approximately 19,670 miles of NGL pipelines; NGL and related product storage facilities; 15 NGL fractionators; and a liquefied petroleum gas and ethane export terminals, and related operations. The Crude Oil Pipelines & Services segment operates approximately 5,400 miles of crude oil pipelines and related operations; and crude oil storage and marine terminals located in Oklahoma and Texas, as well as a fleet of 440 tractor-trailer tank trucks used to transport crude oil. It also engages in crude oil marketing activities. The Natural Gas Pipelines & Services segment operates approximately 19,120 miles of natural gas pipeline systems to gather and transport natural gas in Colorado, Louisiana, New Mexico, Texas, and Wyoming. It leases underground salt dome natural gas storage facilities in Texas and Louisiana; owns an underground salt dome storage cavern in Texas; and markets natural gas. The Petrochemical & Refined Products Services segment operates propylene fractionation and related operations, including 686 miles of pipelines; butane isomerization complex, associated deisobutanizer units, and related pipeline assets; and octane enhancement and high purity isobutylene production facilities. It also operates approximately 4,250 miles of refined products pipelines; and terminals, as well as provides refined products marketing and marine transportation services. The company was founded in 1968 and is based in Houston, Texas.