We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chesapeake (CHK) Q2 Earnings Beat on Higher Realizations
Read MoreHide Full Article
Upstream player Chesapeake Energy Corporation reported strong second-quarter 2017 results on the back of higher oil equivalent price realizations and lower operating costs.
Earnings per share (excluding special items) of 18 cents beat the Zacks Consensus Estimate of 14 cents. The company had reported adjusted loss per share of 16 cents in the prior-year quarter.
Total revenue increased to $1,279 million from $440 million a year ago. The top line also beat the Zacks Consensus Estimate of $1,072 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 48 million barrels of oil equivalent (MMBoe), reflecting a year-over-year decrease of 20%. Production consisted of approximately 8 million barrels (MMbbls) of oil (flat year over year), 209 billion cubic feet (bcf) of natural gas (down 22.3% year over year) and 5 MMbbls of NGL (down almost 29% year over year).
Oil equivalent realized price – including realized gains (losses) on derivatives – in the reported quarter was $22.42 per barrel of oil equivalent, compared with $16.43 a year ago.
Total capital expenditure increased to $620 million from $393 million in the second quarter of 2016.
On the cost front, quarterly production expenses decreased more than 4% year over year to $2.92 per Boe.
Expenses
Total second-quarter 2017 operating expense was $1,882 million, down almost 45% year over year.
Financials
At the end of the quarter, Chesapeake had cash balance of $13 million. Net long-term debt was $9,850 million.
Guidance
Chesapeake has maintained the prior projection and expects 2017 production in the range of 541,000–562,000 Boe per day. Moreover, the company retained the 2017 capital spending projection in the $2,100–$2,500 million band.
Price Performance
Chesapeake has lost 16.3% of its value during the quarter versus the 16.8% downfall of its industry.
Zacks Rank and Key Picks
Chesapeake currently has a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are TransCanada Corporation (TRP - Free Report) , Range Resources Corporation (RRC - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) . TransCanada and Range Resources sport a Zacks Rank #1 (Strong Buy), while Pembina Pipeline carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TransCanada posted average positive earnings surprise of 4.06% over the last four quarters.
Range Resources’ 2017 earnings are projected to grow almost 116%.
Pembina Pipeline’s 2017 earnings are estimated to grow more than 90%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Chesapeake (CHK) Q2 Earnings Beat on Higher Realizations
Upstream player Chesapeake Energy Corporation reported strong second-quarter 2017 results on the back of higher oil equivalent price realizations and lower operating costs.
Earnings per share (excluding special items) of 18 cents beat the Zacks Consensus Estimate of 14 cents. The company had reported adjusted loss per share of 16 cents in the prior-year quarter.
Total revenue increased to $1,279 million from $440 million a year ago. The top line also beat the Zacks Consensus Estimate of $1,072 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 48 million barrels of oil equivalent (MMBoe), reflecting a year-over-year decrease of 20%. Production consisted of approximately 8 million barrels (MMbbls) of oil (flat year over year), 209 billion cubic feet (bcf) of natural gas (down 22.3% year over year) and 5 MMbbls of NGL (down almost 29% year over year).
Oil equivalent realized price – including realized gains (losses) on derivatives – in the reported quarter was $22.42 per barrel of oil equivalent, compared with $16.43 a year ago.
Total capital expenditure increased to $620 million from $393 million in the second quarter of 2016.
On the cost front, quarterly production expenses decreased more than 4% year over year to $2.92 per Boe.
Expenses
Total second-quarter 2017 operating expense was $1,882 million, down almost 45% year over year.
Financials
At the end of the quarter, Chesapeake had cash balance of $13 million. Net long-term debt was $9,850 million.
Guidance
Chesapeake has maintained the prior projection and expects 2017 production in the range of 541,000–562,000 Boe per day. Moreover, the company retained the 2017 capital spending projection in the $2,100–$2,500 million band.
Price Performance
Chesapeake has lost 16.3% of its value during the quarter versus the 16.8% downfall of its industry.
Zacks Rank and Key Picks
Chesapeake currently has a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are TransCanada Corporation (TRP - Free Report) , Range Resources Corporation (RRC - Free Report) and Pembina Pipeline Corporation (PBA - Free Report) . TransCanada and Range Resources sport a Zacks Rank #1 (Strong Buy), while Pembina Pipeline carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TransCanada posted average positive earnings surprise of 4.06% over the last four quarters.
Range Resources’ 2017 earnings are projected to grow almost 116%.
Pembina Pipeline’s 2017 earnings are estimated to grow more than 90%.
More Stock News: Tech Opportunity Worth $386 Billion in 2017
From driverless cars to artificial intelligence, we've seen an unsurpassed growth of high-tech products in recent months. Yesterday's science-fiction is becoming today's reality. Despite all the innovation, there is a single component no tech company can survive without. Demand for this critical device will reach $387 billion this year alone, and it's likely to grow even faster in the future.
Zacks has released a brand-new Special Report to help you take advantage of this exciting investment opportunity. Most importantly, it reveals 4 stocks with massive profit potential. See these stocks now>>