Petroleum and natural gas exploration and production company Chesapeake Energy (CHK) reported higher quarterly earnings today that surpassed analysts’ expectations, as it generated more oil and petroleum gas at higher prices while keeping expenses low. The company’s shares, which were up more than 2% during the pre-market trading, were almost flat when the market opened. However, revenue took a hit dipping 9.6% to $2.5 billion missing analysts’ estimates. Excluding special items, Chesapeake posted earnings of $0.34 per share, an increase of 47.8% year-over-year.
“The strength of our operations and improved cost structure, coupled with higher realized prices, resulted in our best quarterly financial performance in over three years. For the second consecutive quarter, we recorded significant growth in our earnings and cash flow”, said CEO Doug Lawler.
The Oklahoma-based oil producer’s production climbed almost 5% to 554,000 barrels of oil equivalent (boe) per day, while the count of gross wells supplying to the market dropped 25%. Average oil production for the quarter was about 92,000 barrels of oil per day, spiking 16% year-over-year adjusted for asset sales.
Chesapeake’s average realized oil price jumped 10% to $56.89 per barrel in the quarter, while its natural gas price climbed almost 16% to $3.49 per Mcf. This trend was in accordance with the trend among U.S. light crude producers this quarter, who have all profited from an around 33% ascent in costs of U.S. light crude when compared to a year ago.