Apache Corporation (APA), Devon Energy Corp (DVN), Chesapeake Energy Corporation (CHK): Three Opportunistic Energy Stocks for Your Portfolio

Chesapeake – where a lot of investors are bullish

Another energy company that investors should keep their eyes on is Chesapeake Energy Corporation (NYSE:CHK). With around 15.70 tcfe in its total proved reserves, Chesapeake Energy Corporation (NYSE:CHK) is considered to be one of the largest U.S. natural gas producers. The company has been selling its non-core assets in order to pay down its debt. In the first quarter, the company announced that it had sold around $2 billion of its assets. Chesapeake has set a goal of $4 billion to $7 billion asset divestment within this year.

Indeed, as Chesapeake Energy Corporation (NYSE:CHK) owns great natural gas assets, it is in the holdings of many investors including Carl Icahn, Mason Hawkins, and Mohnish Pabrai. Recently, another focused value investor, Bruce Berkowitz, also accumulated around 13.4 million shares in the company, accounting for nearly 3% of his total portfolio. Chesapeake Energy Corporation (NYSE:CHK) is trading at around $20.80 per share with a total market cap of $13.9 billion. The market values Chesapeake Energy Corporation (NYSE:CHK) at around 5.8 times EV/EBITDA. At the current trading price, Chesapeake offers investors a dividend yield of 1.70%.

My Foolish take

Indeed, all three energy companies, with great oil/gas assets, could fit well in the portfolios of investors. All three companies also offer dividends with yields ranging from 1% to 1.70%. Among the three, I like Chesapeake Energy Corporation (NYSE:CHK) the most with its leading position in U.S. natural gas. Its strategy to divest its non-core assets could bring to its shareholders a lot of value in the near future.

The article 3 Opportunistic Energy Stocks for Your Portfolio originally appeared on Fool.com and is written by Anh Hoang.

Anh HOANG owns shares of Chesapeake Energy. The Motley Fool owns shares of Apache and Devon Energy and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy. Anh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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