Chesapeake Energy Posts Smaller Quarterly Loss
Feb 23 (Reuters) - Shares in U.S. natural gas producer Chesapeake Energy Corp fell on Thursday after posting a smaller fourth-quarter loss than a year earlier, when it took huge charges to write down the value of some oil and gas assets.
Results were hurt by lower volumes, weaker prices and losses on hedging, and shares in Chesapeake were down more than 7 percent around 1:00 p.m. EDT (1800 GMT) at $5.49. It said expects to reverse volume declines, adjusted for divestitures, in the second half of the year.
In a note, Barclays analysts wrote the company's fourth quarter results were largely in line with expectations, but described Chesapeake's 2017 production forecasts as "a bit more pessimistic" than rivals.
Chief Executive Doug Lawler said on a conference call, "We will be working to accelerate our stated debt reduction target of $2 billion to $3 billion over the next few years through additional asset sales." Next year, the company expects to be cashflow neutral, balancing cash received from operations with capital expenditures.
Chesapeake said production averaged about 574,500 barrels of oil equivalent per day (boepd) in the quarter, down 13.1 percent from a year earlier.
Chesapeake, like its peers, has been selling assets to lower its crippling debt load after a two-year rout in oil prices depleted its cash balances.
The company narrowed its 2017 capital budget last week, but maintained its production target of 532,000-562,000 boepd.
The company's net loss available to shareholders narrowed to $741 million, or 84 cents per share, in the three months to Dec. 31, from $2.23 billion, or $3.36 per share, a year earlier.
The latest figures included $395 million in unrealized hedging losses on oil and natural gas derivatives and a $428 million loss on the exchange of preferred stock. The year-ago quarter included charges of about $2.83 billion, mainly for asset impairment.
Excluding items, the company earned 7 cents per share, in line with the average analysts' estimate, according to Thomson Reuters I/B/E/S.
Chesapeake's total revenue fell nearly 24 percent to $2.02 billion in the latest quarter, narrowly missing analysts' average estimate of $2.08 billion.
(Reporting by Arathy S Nair in Bengaluru and Gary McWilliams in Houston; Editing by Frances Kerry and Alden Bentley)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension