Chesapeake Energy gains on launching $1 bln stock buyback

CHK Oil

02/12/2021 15:28

** Shares of Chesapeake Energy Corp  CHK.O  climb 5.4% to
$60.08
    ** CHK to buy back up to $1 billion of stocks and/or
warrants
    ** Co says despite the volatility in commodity markets, its
cash flow projections remain robust, supporting a $1.75/share
base dividend plus a variable dividend equal to 50% of free cash
flow
    ** CHK expects to execute $1 bln equity buyback program over
the next 24 months
    ** Estimate that total cash dividends to be paid to
shareholders in 2022 will range from $800 mln to $1 bln - CEO
Nick Dell'Osso
    ** "Management continues to double down on its return of
capital commitment which we think shareholders will continue to
reward" - Tudor, Pickering, Holt & Co
    ** Share repurchase program complements the dividend program
offering increased optionality and should appeal to a bigger
audience of investors, says RBC Capital Markets 
    

 (Reporting by Arunima Kumar in Bengaluru)
 ((Arunima.Kumar@thomsonreuters.com; Twitter: https://twitter.com/Aru_Kumar94))