Chesapeake Energy 3Q Loss Narrowed; Lowers Spending Targets for 2020
November 05 2019 - 7:51AM
Dow Jones News
By Carlo Martuscelli
Chesapeake Energy Corp. (CHK) on Tuesday reported a narrowed
loss in third-quarter profit and said it is lowering its capital
expenditure targets for next year.
The Okla.-based oil-and-gas company posted a quarterly loss of
$61 million, or 6 cents a share, compared with a loss of $146
million, or 19 cents, for the same period a year earlier. Excluding
items, Chesapeake reported an adjusted loss of 11 cents a share for
the quarter, compared with analysts' forecasts of a 9 cent
loss.
Sales fell to $2.06 billion from $2.42 billion.
Daily production in the third quarter averaged at about 478,000
barrels of oil equivalent a day, the company said.
Chesapeake Energy said it is looking to achieve positive free
cash flow in 2020. The company said it is lowering its capital
expenditure forecast by about 30% in 2020. It is also looking to
lower 2020 production and general and administrative costs by about
10%.
"Our capital efficiency improvements, expected reduction in cash
costs and anticipated capital plan position us to target free cash
flow in 2020," said Doug Lawler, president and chief executive.
In the fourth quarter, the company said it expects oil
production to grow 10% compared with the third quarter.
Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com;
@carlomartu
(END) Dow Jones Newswires
November 05, 2019 07:36 ET (12:36 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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