Chesapeake Energy Corp.
) reported second-quarter 2014 adjusted earnings of 36 cents per
share, falling behind the Zacks Consensus Estimate of 44 cents.
Also, the reported figure deteriorated from the year-earlier profit
of 51 cents.
Chesapeake Energy Corporation - Earnings
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Quarterly revenues improved to $5,152 million from $2,406
million a year ago.
Chesapeake's daily production for the reported quarter averaged
approximately 694,650 barrel of oil equivalent (Boe), reflecting an
increase of 13% from 2013 second quarter. Average daily production
consisted of approximately 113,400 barrels per day (Bbl/d) of oil,
84,300 Bbls of NGL and 3.0 billion cubic feet (Bcf) of natural gas.
Oil equivalent realized price was $26.97 per boe, down from $29.73
in the year-earlier quarter. Average realizations for natural gas
were $2.45 per Mcf compared with $2.62 per Mcf in the year-earlier
quarter. Oil was sold at $85.23 per barrel, down from the year-ago
price of $93.81.
On the cost front, quarterly production expenses were $4.46 per
Boe, reflecting a decrease of 5% year over year. Chesapeake spud a
total of 324 gross wells and connected 275 gross wells to sales
during the reported quarter.
At the end of the quarter, Chesapeake − the largest U.S. natural
gas producer after ExxonMobil Corporation (
) − had a cash balance of $1,462 million. Long-term debt stood at
$11,549 million, representing a debt-to-capitalization ratio of
Chesapeake raised the midpoint of its expected 2014 daily
production rate by 10,000 Boe, or 1.5%, to between 685,000 boe and
705,000 boe per day. In the second half of 2014, the company plans
to connect approximately 35% more wells to sales than the first
half. The increase in production is attributable to better
production trends in the first half of the year, coupled with an
increase in forecast well connections during the second half of
Chesapeake currently carries a Zacks Rank #3 (Hold). However, there
are stocks in the oil and gas sector like Weatherford International
), and Cameron International Corp. (
), which hold a Zacks Rank #1 (Strong Buy) and are expected to
outperform the market.
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