Chesapeake Energy reports 3Q earnings, issues concern about oil, gas prices

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OKLAHOMA CITY (AP) — Chesapeake Energy Corp. (CHK) on Tuesday reported a third-quarter loss of $61 million, after reporting a profit in the same period a year earlier.

On a per-share basis, the Oklahoma City-based company said it had a loss of 6 cents. Losses, adjusted for non-recurring gains, were 11 cents per share.

The results did not meet Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for a loss of 10 cents per share.

The natural gas company posted revenue of $2.06 billion in the period. Its adjusted revenue was $1.17 billion, which matched Street forecasts.

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In a 10-Q form filed with the Securities and Exchange Commission, Chesapeake noted that if prices remain low for oil and gas, it many not be able to continue “as a going concern.” Chesapeake said it is exploring a variety of options and cost-cutting measures in order to avoid those issues.

Average daily production for the 2019 third quarter was approximately 478,000 barrels of oil equivalent (boe), representing year-over-year growth of 3% adjusted for asset purchases and sales, and consisted of approximately 115,000 bbls of oil, 1.989 billion cubic feet (bcf) of natural gas and 32,000 bbls of natural gas liquids (NGL). Average daily production for the 2018 third quarter was approximately 537,000 boe and consisted of approximately 89,000 bbls of oil, 2.332 bcf of natural gas and 59,000 bbls of NGL. Oil production represented approximately 24% of the company’s 2019 third quarter aggregate production, compared to 17% in the 2018 third quarter.

The company’s shares closed at $1.56. A year ago, they were trading at $3.49.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on CHK at https://www.zacks.com/ap/CHK

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