Chesapeake Energy Corp.
) 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.
CHESAPEAKE ENGY (CHK): Free Stock Analysis
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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.
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
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.
At the end of the quarter, Chesapeake − the largest U.S. natural
gas producer after
) − had a cash balance of $1,004.0 million. Long-term debt stood
at $12,653.0 million, representing a debt-to-capitalization ratio
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
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.
Matrix Service Company
), which hold a Zacks Rank #1 (Strong Buy) and are expected to
outperform the market.