Chesapeake Energy tops quarterly estimates, cuts production views
Reuters
Published Feb 20, 2024 04:04PM ET
Updated Feb 20, 2024 08:30PM ET
(Reuters) -Chesapeake Energy beat Wall Street estimates for fourth-quarter profit on Tuesday as the U.S. natural gas producer tackled weak commodity prices with lower operating expenses.
Chesapeake shares fell about 2% in aftermarket trading as the company forecast a 20% drop in spending on baseline production this year. Its fourth-quarter shareholder returns also fell sharply versus earlier quarters.
Share buybacks and dividends totaled about $117 million in the final quarter, down from an average of $242.6 million per quarter in the first nine months.
The Oklahoma-based company reported fourth-quarter output fell to 3.43 billion cubic feet equivalent (bcfe) per day, from 4.05 bcfe per day the previous year. Its capital spending plan will fund about 2.7 bcfe per day in volumes this year, the company said.
Average natural gas prices dipped over 50% in the fourth quarter compared with last year, and have fallen to a three-and-one-half year low this month.
"We continue to show the resilience of this organization and assets in the midst of lower commodity prices," said CEO Nick Dell (NYSE:DELL)'Osso said in the earnings release.
Adjusted profit was $1.31 per share for the three months ended Dec. 31, compared with analysts' average estimate of 73 cents per share, according to LSEG data.
The business generated $470 million in operating cash flow in the quarter, down from $1.05 billion in the year ago period.
Chesapeake said in January it had agreed to buy rival Southwestern Energy (NYSE:SWN) in an all-stock deal valued at $7.4 billion, making it the largest independent U.S. natural gas producer.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.