NEW YORK (AP) — Chesapeake Energy Corp. on Thursday reported a narrower loss during its third quarter as lower costs helped ease the ongoing impact of low commodity prices.
The results topped Wall Street expectations and sent shares up almost 4 percent in midday trading.
The natural gas company lost $1.16 billion, or $1.54 per share, compared with a hefty loss of $4.7 billion, or $7.08 per share a year prior. Earnings, adjusted for non-recurring costs and asset impairment costs, came to 9 cents per share.
The results topped Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for a loss of 4 cents per share.
Revenue continued falling during the quarter, dropping 13.6 percent to $1.18 billion. Still, it surpassed Street forecasts. Five analysts surveyed by Zacks expected $1.03 billion.
The company has slashed spending, sold assets and cut jobs to account for plunging energy prices. It also ended dividend payments for its preferred stock to save money. Operating expenses plunged 61 percent as result of cost-cutting measures.
In September, the U.S. Department of Justice issued a subpoena to Oklahoma City-based company, seeking information on its accounting methods for the acquisition and classification of oil and gas properties. The company is also facing several class-action lawsuits over the allegations that it made false or misleading statements to investors.
Chesapeake stock gained 20 cents, or 3.7 percent, to $5.50 in midday trading. Its shares have fallen almost 28 percent in the last 12 months.
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