Natural gas producer Chesapeake Energy Corporation ( CHK ) late Tuesday said its fourth quarter profit plunged 65% from last year, but adjusted results beat analyst expectations.
The Oklahoma City-based company reported fourth quarter net income of $180 million, or 28 cents per share, compared with $515 million, or 75 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 70 cents per share.
Revenue fell 10% from last year to $1.98 billion.
On average, Wall Street analysts expected a smaller adjusted profit of 64 cents per share, albeit on much higher revenue of $2.2 billion.
Chesapeake Energy shares rose 49 cents, or +1.5%, in premarket trading Wednesday.
The Bottom Line
Shares of Chesapeake Energy ( CHK ) have a .94% dividend yield, based on last night's closing stock price of $32.01. The stock has technical support in the $28 price area. If the shares can continue the recent momentum, we see overhead resistance around the $34-$36 price levels.
Chesapeake Energy Corporation ( CHK ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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