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Chesapeake Energy's shares have fallen back lately.

Nonetheless, the oil and natural gas company has recorded major successes, namely a significant reduction in leverage and expenses.

Chesapeake Energy is expected to reach FCF neutrality in 2018, if not sooner.

Since Chesapeake Energy's sights are set on growth again, the reward-to-risk ratio looks good after the latest drop in price.

Oil and natural gas drilling company Chesapeake Energy Corp.'s (NYSE:CHK) shares have fallen back lately on the back of profit taking, and the drop in price is an opportunity to buy into Chesapeake Energy as the company sets its sights on growth again. Chesapeake Energy has made major progress in the last several years in terms of reducing expenses and has significantly reduced leverage. Recovering price realizations translate into Free Cash Flow upside, which in turn makes today's reward-to-risk ratio compelling.

Chesapeake Energy's shares have dropped in the last several months, falling from a range of $7-8 in December to a range of $5-6 in April, and profit taking is to blame.

The energy company was a speculation object for much of 2015 and 2016 when investors bet that Chesapeake Energy would go out of business. Chesapeake Energy's share price fell to a low of $1.50 in 2016, but investors quickly jumped into the trade when it became clear that energy prices had bottomed out, and that the company had a good chance to survive. And that trade has paid off handsomely: Since February 2016, Chesapeake Energy has become a multi-bagger...At least for those investors that gobbled up some shares on the cheap when nobody wanted to invest in the energy sector.

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