5 Best Gas Stocks To Buy Now

4. Chesapeake Energy Corporation (NYSE:CHK)

Number of Hedge Fund Holders: 50

Chesapeake Energy Corporation (NYSE:CHK) is another independent energy firm that explores oil and natural gas assets in the U.S. The number of hedge funds tracked by Insider Monkey with stakes in Chesapeake Energy Corporation (NYSE:CHK) increased to 50 in Q4 2021, up from 44 in Q3 2021. Their positions were worth $2.34 billion as of the end of the fourth quarter. 

The Oklahoma-based natural gas producer is among the many energy companies that benefited from the strong gas price rally last year. The stock has delivered 70% returns to investors in the previous year, as of March 16. Moreover, Chesapeake Energy Corporation (NYSE:CHK) generated more than $1.2 billion in adjusted free cash flow last year and expects to produce $1.9 to $2.1 billion in adjusted free cash flow in 2022. On March 8, RBC Capital analyst Scott Hanold kept his ‘Outperform’ rating on Chesapeake Energy Corporation (NYSE:CHK) and increased his price target for the stock to $98 from $88.

Chesapeake Energy Corporation (NYSE:CHK) would be a good fit for income investors looking to diversify their portfolios with an energy asset. The company recently announced a total dividend payout of $5 billion over the next five years. Currently, the Oklahoma-based energy firm pays its shareholders an annual dividend of $2.89 per share.