Chesapeake Beats on Q1 Earnings and Revs - Analyst Blog
May 07 2014 - 2:00PM
Zacks
Chesapeake Energy
Corp. (CHK) reported adjusted first quarter 2014 earnings
of 59 cents per share, comfortably beating the Zacks Consensus
Estimate of 47 cents. Also, the reported figure improved from the
year-earlier profit of 30 cents a share.
Quarterly revenues improved to $5,046.0 million from $3,424.0
million a year ago. The top line also got the better of the Zacks
Consensus Estimate of $1,864.0 million.
Operational Performance
Chesapeake’s daily production for the reported quarter averaged
approximately 675,200 barrel of oil equivalent (Boe), an increase
of 11% from 2013 first quarter. Average daily production consisted
of approximately 109,500 barrels per day (Bbl/d) of oil, 84,200
Bbls of NGL and 2.9 billion cubic feet (Bcf) of natural gas.
Oil equivalent realized price in the reported quarter was $35.35
per boe, up from $26.71 in the year-earlier quarter. Average
realizations for natural gas were $3.27 per Mcf compared with $2.13
per Mcf in the year-earlier quarter. Oil was sold at $85.08 per
barrel, down from the year-ago price of $94.85 per barrel.
On the cost front, quarterly production expenses were $4.73 per
Boe, reflecting an increase of 2.4% sequentially.
Financials
At the end of the quarter, Chesapeake − the largest U.S. natural
gas producer after ExxonMobil Corporation (XOM) −
had a cash balance of $1,004.0 million. Long-term debt stood at
$12,653.0 million, representing a debt-to-capitalization ratio of
39.0%.
Guidance
The company raised its 2014 total production growth outlook on an
adjusted basis to 9–12% from 8–10%, to reflect higher-than-expected
natural gas liquids volumes. However as the company shifts its
focus to more liquid-rich plays, it expects liquids production to
increase approximately 25–29% in 2014. For 2014, Chesapeake expects
capital expenditure in the range of $5,200–$5,600 million.
Zacks Rank & Other Stocks
Chesapeake carries a Zacks Rank #3 (Hold) and is expected to
perform in line with the market in the next one to three months.
However, there are stocks in the oil and gas sector like,
Clayton Williams Energy, Inc. (CWEI) and
Matrix Service Company (MTRX), which hold a Zacks
Rank #1 (Strong Buy) and are expected to outperform the market.
CHESAPEAKE ENGY (CHK): Free Stock Analysis Report
WILLIAMS(C)ENGY (CWEI): Free Stock Analysis Report
MATRIX SERVICE (MTRX): Free Stock Analysis Report
EXXON MOBIL CRP (XOM): Free Stock Analysis Report
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