Investing.com - Chesapeake Energy Corporation's (NYSE:CHK) shares reversed direction as Thursday's session went underway, erasing earlier gains that followed the company's report of better earnings and revenue in the second quarter. The reason for the reversal appears to be traders turning their attention towards the company's drop in production.
Chesapeake earned $470 million, or 47 cents a share, in the quarter, up from $75 million, or 8 cents a share, in the year-earlier period. Adjusted per-share earnings came to 18 cents, ahead of the analyst consensus estimate of 14 cents.
Revenue rose to $2.281 billion from $1.622 billion, as oil and gas revenue rose to $1.279 billion from $440 million.
The company reported production of about 528,000 barrels, below the Wall Street consensus of 538,000. But, this should improve later this year. "We expect our total production to move higher throughout the year, driven by large turn-in-line projects underway in the Eagle Ford, Utica and Powder River Basin operating areas."
Chesapeake's shares were recently down 0.8% at $4.59, the quickly snapped up 4% earlier today following the earnings release.