Chesapeake Energy Beats Earnings and Outlook Expectations

Chesapeake Energy reported before the market opened Wednesday beating profit and revenue estimates for the first quarter. Chesapeake was boosted by oil and gas production and raised outlook. $CHK also took losses on hedges.

Chesapeake Energy reported before the market opened Wednesday beating profit and revenue estimates for the first quarter. Chesapeake was boosted by oil and gas production and raised outlook. $CHK also took losses on hedges.

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Earnings 

Adjusted earnings per share (EPS) of $0.34 on revenues of $2.49 billion. In the same period a year ago, adjusted EPS of $0.23 on revenues of $2.75 billion. Consensus estimates were EPS of $0.27 and $2.53 billion in revenues.

Chesapeake Energy Corporation NYSE: CHK

Market Reaction >2.96 USD −0.025 (0.84%) May 2, 10:02 AM EDT

Highlights

  • Total revenues from oil, natural gas and natural gas liquids sales down 15% due to unrealized loss on hedges of $119 million.
  • Average daily production rose from 528,000 barrels of oil equivalent per day in the first quarter of 2017 to 554,000 barrels this year.
  • Average (unhedged) price per barrel of oil rose from $50.24 last year to $64.61, and the price per thousand feet of natural gas rose from $3.10 to $3.18.
  • On an oil-equivalent barrel basis, the average price rose from $24.13 to $27.27. 

Guidance

  • CHK’s outlook for fiscal year 2018 remained mostly unchanged, including production growth of 1% to 5% (adjusted for asset sales), oil production of 51 million to 55 million barrels, natural gas production of 825 million to 875 million barrels of oil equivalent, and natural gas liquids production of 20 million to 22 million barrels.
  • Chesapeake now estimates that it will lose $10.20 per barrel of oil on realized hedging effects.
  • 2018 production expenses are estimated at $2.60 to $2.80 per barrel of oil equivalent compared with $2.81 in 2017 ($2.50 in the fourth quarter).
  • Capital expenditure is forecast in a range of $1.98 billion to $2.38 billion (compared to approximately $2.46 billion in 2017). 

 


Chart via: http://thecollegeinvestor.com/11445/chesapeake-energy-is-poised-to-grow/

 

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