The "+20% move reflects importance of constructive lender update and fading of negative sentiment on the name. Further, the ongoing crude recovery and what we believe will be a significant gas price rebound in 2017 should strengthen tailwinds for the equity," Tudor said in a note.
U.S. crude prices have gained over 20 percent in the last two months and were up about 1 percent Tuesday.
Chesapeake debt was also upgraded to "marketweight" from "underweight" at Citi on Monday.
Citi said it had five catalysts that would cause it to re-evaluate its ratings on Chesapeake, and two of them have now been met.
Citi analysts wrote that "the borrowing base is down less than our 20% expectation (it was reaffirmed) and (2) there have been more open market purchases to reduce the maturity wall."
"The credit facility amendment also loosened covenants and put a hold on redeterminations, giving CHK time to ride out a low commodity price environment. Given restrictions in the 2nd lien covenants, we would expect CHK to issue a secured first lien term loan which it could use to take-out the 2017-2018 bonds."
Chesapeake in 2016