Categories AlphaGraphs, Earnings, LATEST, Other Industries

Chesapeake soars 9% after delivering strong Q3 results

Chesapeake Energy Corporation’s (CHK) stock soared over 9% in morning trade today after the company topped estimates on revenues and earnings for the third quarter of 2018 on Tuesday.

Total revenues grew to $2.42 billion in the quarter from $1.94 billion in the same period last year. Net income available to common stockholders was $60 million or $0.07 per share. This compares to a net loss of $41 million or $0.05 per share in the prior-year quarter. Adjusted net income totaled $174 million or $0.19 per share in the quarter.

Chesapeake Energy third quarter earnings infographic
Chesapeake Energy Q3 2018 Earnings Infographic

Average production was approx. 537,000 BOE per day, up 5% from last year, adjusted for asset sales. Average oil production was approx. 89,000 barrels of oil per day, up 13% from last year, adjusted for asset sales, primarily driven by higher volume growth from the Powder River Basin.

Chesapeake expects to place an additional 15 wells on production in the fourth quarter of 2018 and is currently projecting an additional 65 to 70 Turner wells to be placed on production in 2019. The company is looking to add a sixth rig in 2019, which is likely to focus on the Parkman and Niobrara formations.

Chesapeake shares fall after weak top line in Q2

In the third quarter, Chesapeake entered into a long-term supply agreement with an LNG provider for a portion of its in-basin net Marcellus gas production. Under the agreement, Chesapeake will supply around 260 million to 365 million British thermal units per day of net Marcellus gas production to the provider for a term of 15 years.

On Tuesday, Chesapeake announced its plan to acquire WildHorse Resource Development Corporation (WRD) for approx. $3.97 billion. The acquisition is expected to expand Chesapeake’s oil growth platform and increase its oil production. The deal is also projected to deliver substantial cost savings, and is expected to close in the first half of 2019.

 

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat

Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the

Nutanix (NTNX) Earnings: 2Q21 Key Numbers

Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3

Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023

Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top