3 Key Trends Weighing On Chesapeake Energy's Valuation

In view of the changed commodity price environment, Chesapeake has announced that it will spend around $3.5 to $4 billion in gross capital expenditures this year, about 45% less than what it did last year. Lower capital expenditures mean lower investment in future production growth. Therefore, while lower capital spending will improve its free cash flows to the firm, we believe it will also slow down the company's short to medium-term production growth. For example, last year, Chesapeake's liqui...