Chesapeake Energy (CHK) Beats On Q4 Earnings, Reserves Grow
Zacks Investment Research | Feb 22, 2018 01:39AM ET
Chesapeake Energy Corporation (NYSE:CHK) reported strong fourth-quarter 2017 results, courtesy of higher oil equivalent production and price realizations.
Earnings per share (excluding special items) of 30 cents surpassed the Zacks Consensus Estimate of 25 cents and the year-ago adjusted figure of 7 cents.
Total revenues surged to $1,258 million from $678 million a year ago. The top line also beat the Zacks Consensus Estimate of $1,234 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 55 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of 4%. Production comprised of approximately 9 million barrels (MMbbls) of crude (up 12% year over year), 239 billion cubic feet (bcf) of natural gas (up 1.3%) and 5 MMbbls of NGL (flat).
Oil equivalent realized price — including realized gains (losses) on derivatives — in the reported quarter was $24.41 per barrel of oil equivalent, up 20.2% year over year.
Total capital expenditure increased to $523 million from $463 million in the fourth quarter of 2016.
On the cost front, quarterly production expenses decreased 16% year over year to $2.50 per Boe.
Expenses
Total fourth-quarter 2017 operating expense was $ 2,114 million, down more than 8% year over year.
Financials
At the end of the fourth quarter, Chesapeake had cash balance of $5 million. Net long-term debt totaled $9,921 million.
Proved Reserves
As of Dec 31, 2017, the company’s total proved reserves was recorded at 1,912 MMBoe, up almost 12% year over year.
Q4 Price Performance
During fourth-quarter 2017, Chesapeake lost 7.9% as against the Zacks Investment Research
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