Chesapeake Energy Results Not as Bad as Feared
November 03 2016 - 8:50AM
Dow Jones News
Chesapeake Energy Corp. said its third-quarter loss narrowed
thanks to lower costs that helped offset a drop in revenue on
reduced production and low commodities prices.
Shares rose 6.4% to $5.62 in recent premarket trading as the
results weren't as bad as analysts had feared.
Over all, Chesapeake reported a loss of $1.16 billion, or $1.54
a share, compared with a year-earlier loss of $4.7 billion, or
$7.08 a share, a year earlier. Excluding Barnett shale exit costs,
asset write-downs and other items, adjusted per-share earnings were
9 cents, compared with a year-earlier loss of 6 cents. Revenue
dropped by a third to $2.28 billion.
Analysts polled by Thomson Reuters expected a per-share loss of
3 cents and revenue of $2.16 billion.
Chesapeake in August agreed to pay nearly $340 million to exit
the Barnett Shale in Texas, part of the energy producer's efforts
to improve its finances. The move helps rid Chesapeake of nearly
$1.9 billion in financial commitments it had to Williams Partners
LP, a pipeline company that moved to market the natural gas
Chesapeake pumped in the Barnett. Chesapeake also will transfer its
interests in the Barnett field to Saddle Barnett Resources LLC, a
private equity-backed company based in Dallas.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
November 03, 2016 08:35 ET (12:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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