Is Chesapeake Energy a good company to work for? Chesapeake Energy Corporation (NYSE:CHK) announced the approval of dividend payments to common shareholders. The payment rate has sustained at $0.0875 per share, the same rate the company has paid since July 2011, representing a $0.35 annualized dividend, and a dividend yield of 1.33%. The firm has approximately 665 million outstanding shares, and the firm is expected to disburse around $58.1875 million.
Analysts’ reports, however, remain divided concerning the future prospects. Currently, 9 analysts recommend to “buy” the stock, 22 prefer to “hold”, and 2 expect the firm to “underperform.” Zacks, on its last report, has maintained a “neutral” recommendation with a target price of $28. But, MorningStar remains “bullish” about the stock with a fair price of $31.
Chesapeake has made up to its promises with shareholders, but in the process has cut jobs. The layoffs are part of newly installed CEO Doug Lawler’s move to divest non-core assets and investments, driven by what management is calling a “more competitive capital allocation process.” In other words, the firm aims to close the existing funding gap through a divestiture strategy before the year’s end. Layoffs have hinted are aimed specifically to the natural gas vehicle team that is expected to be slain completely.
On another note, the Environmental Protection Agency (EPA) has proposed standards for new power plants as part of President Obama’s Climate Action Plan. New guidelines propose cuts on carbon pollution to lessen environmental impact and improve public health. The EPA stated that “New coal-fired units would need to meet a limit of 1,100 pounds of CO2 per megawatt-hour, and would have the option to meet a somewhat tighter limit if they choose to average emissions over multiple years, giving those units additional operational flexibility.” The changes, however flexible, are expected to hit carbon burners the hardest, while pushing demand for the gas industry. So if you’re still asking yourself if Chesapeake Energy is a good company to work for, check out the articles below.
Disclosure: Jodor Jalit holds no position in any of the mentioned stocks.