Chesapeake Energy’s stock surges, fueled by jump in energy prices
Shares of Chesapeake Energy Corp. surged 4.4% to a more-than one-year high in active morning trade Monday, fueled a run up in crude oil prices to a 3 1/2-year high. Volume topped 5.6 million shares, making the stock the third-most active on the NYSE. Continuous crude oil futures jumped 1.6% to $75.14, which would be the highest close seen since November 2014, amid growing concerns over supply. Natural gas futures edged up 0.2%. The correlation coefficient between Chesapeake’s stock and crude oil futures is 0.85 over the past 5 years, in which a 1.00 correlation would mean the move exactly in sync. The correlation coefficient between Chesapeake shares and natural gas futures is 0.79 over the same time. Chesapeake’s stock was on track to close at the highest level since May 24, 2017. It has rocketed 85% over the past three months, while the SPDR Energy Select Sector ETF has rallied 13% and the S&P 500 has gained 4.6%.