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Chesapeake reverses lower as production falls more than expected

Published 05/04/2017, 10:59 AM
© Reuters.  Chesapeake reverses lower as production falls more than expected
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  • Chesapeake Energy (CHK -8.2%), which indicated higher during the pre-market after reporting better than expected Q1 earnings, reverses sharply and is now more than 8% lower as production fell even as it spent more than analysts had estimated.
  • CHK's Q1 production of 528K boe/day came in near the midpoint of company guidance but fell 21% Y/Y and fell short of Wall Street expectations of 530K-536K boe/day.
  • CHK's Q1 capex of $576M also was well above analyst estimates of $494M; "CHK continues to outspend cash flow to move back to growth," Jefferies analysts say.
  • CHK also raises the lower end of its 2017 capex forecast by $200M to $2.1B but retained the upper end at $2.5B; it raises the lower end of its full-year production forecast to 197.5M boe from 194M, while maintaining the upper end of the range at 205M boe.
  • Now read: Chesapeake Energy Corporation 2017 Q1 - Results - Earnings Call Slides


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