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Chesapeake Energy -6% as Q2 revenues fall on lower nat gas prices

Published 08/01/2018, 07:59 AM
© Reuters.  Chesapeake Energy -6% as Q2 revenues fall on lower nat gas prices
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  • Chesapeake Energy (NYSE:CHK) -5.7% premarket after reporting in-line Q2 earnings but revenues fell 1% to $2.26B, slightly below expectations, as lower natural gas prices and higher expenses hit the company's margins.
  • CHK says Q2 production averaged ~530K boe/day, +0.5% vs. 528K boe/day in the year-ago quarter, while the average daily sales price rose 13.8% to $25.56/boe; the average rig count fell to 17 from 19.
  • CHK sold natural gas at an average sales price of $2.56/Mcf during the quarter, down from $2.88/Mcf a year ago.
  • Q2 oil and gas revenue fell 23% Y/Y to $982M from $1.28B, missing analyst consensus of $1.16B, while marketing revenue rose 27% to $1.27B from $1B to beat expectations of $1.09B.
  • CHK says Q2 production expenses were $2.86/boe vs. $2.92/boe in the year-ago quarter, primarily as a result of certain 2018 and 2017 divestitures.
  • Now read: Chesapeake Energy's Monumental Move


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