(Reuters) - Chesapeake Energy Corp (N:CHK) on Wednesday raised its oil and gas production forecast for the year even as the second largest U.S. producer of natural gas reported a quarterly loss related to lower commodity prices.
Chesapeake, like other shale producers including Devon Energy Corp (N:DVN), has slashed budgets in response to the crude oil price collapse, but a focus on making the drilling process more efficient and lower costs are enabling the companies to pump more oil.
Chesapeake said it now expects oil and gas output of 640,000 to 650,000 barrels oil equivalent per day (boed). Previously, the company forecast output of 635,000 to 645,000 boepd.
Chesapeake had a first-quarter net loss of $3.78 billion or $5.72 per share, compared with a year-earlier profit of $374 million or 54 cents per share.
Excluding one-time items that reduced the company's net income by $3.8 billion, Chesapeake had a profit of 11 cents per share.
Analysts on average had expected a profit of 4 cents per share, according to Thomson Reuters I/B/E/S.
Oil and gas output was 686,000 barrels oil equivalent per day, up 14 percent from a year earlier after adjusting for asset sales.