Risk factor
Very high price volatility
Profitability factor
Very low or no dividends
About
Operating as an investment holding firm, CHK Oil Limited is primarily involved in the upstream oil and natural gas sector, spanning exploration, development, production, and sales activities. Its operations extend across Hong Kong, the United States, and the People's Republic of China, including a significant exploitation stake in the Utah Gas and Oil Field project located in Utah, USA. Beyond its core energy pursuits, the company also engages in the trading of petroleum and related commodities, alongside providing various corporate services. The firm was rebranded as CHK Oil Limited in February 2020, having previously operated under the name Pearl Oriental Oil Limited. Its corporate headquarters are situated in Tsim Sha Tsui, Hong Kong, and it functions as a subsidiary of Xin Hua Petroleum (Hong Kong) Limited.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, neutral on EV/EBITD.