Chesapeake's Net Income for 2007 Tops Out at $7.8 Billion
For the 2007 fourth quarter, Chesapeake Energy generated net income available to common shareholders of $158 million ($0.33 per fully diluted common share), operating cash flow of $1.3 billion (defined as cash flow from operating activities before changes in assets and liabilities) and ebitda of $1.2 billion (defined as net income before income taxes, interest expense, and depreciation, depletion and amortization expense) on revenue of $2.1 billion and production of 204 billion cubic feet of natural gas equivalent (bcfe).
For the 2007 full year, Chesapeake generated net income available to common shareholders of $1.2 billion ($2.62 per fully diluted common share), operating cash flow of $4.6 billion and ebitda of $4.7 billion on revenue of $7.8 billion and production of 714 bcfe.
The company's 2007 fourth quarter and full year net income available to common shareholders and ebitda include various items that are typically not included in published estimates of the company's financial results by certain securities analysts. Excluding the items detailed below, Chesapeake generated adjusted net income to common shareholders in the 2007 fourth quarter of $466 million ($0.93 per fully diluted common share) and adjusted ebitda of $1.4 billion. For the 2007 full year, Chesapeake generated adjusted net income to common shareholders of $1.6 billion ($3.21 per fully diluted common share) and adjusted ebitda of $5.0 billion.
In September 2007, Chesapeake announced an enhanced financial plan designed to monetize latent balance sheet value and to fully fund its planned capital expenditures through at least 2009 without accessing public capital markets. Since then, the company has successfully implemented multiple aspects of the plan and anticipates further progress during 2008 and 2009. Chesapeake believes its planned future transactions in the asset and financial markets will allow it to monetize additional assets for approximately $3 billion by the end of 2009 that, in management's opinion, have not been adequately reflected in the company's market valuation historically.
Chesapeake's 2007 full year production of 714.3 bcfe was comprised of 655.0 bcf (92% on a natural gas equivalent basis) and 9.882 mmbbls (8% on a natural gas equivalent basis). Chesapeake's average daily production for the 2007 full year of 1.957 bcfe consisted of 1.794 bcf and 27,074 bbls. The company's growth rate for its 2007 full year natural gas production was 24% and its growth rate for 2007 full year oil production was 14%. The 2007 full year was Chesapeake's 18th consecutive year of sequential production growth.
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