Chesapeake Energy (CHK) Tops Q3 EPS by 9c; Trims CapEx Outlook

Chesapeake Energy (NYSE: CHK) reported Q3 EPS of ($0.05), $0.09 better than the analyst estimate of ($0.14). Revenue for the quarter came in at $2.89 billion versus the consensus estimate of $3 billion.

Chesapeake's daily production for the 2015 third quarter averaged approximately 667,000 barrels of oil equivalent (boe), a year-over-year increase of 3% adjusted for asset sales. Average daily production in the 2015 third quarter consisted of approximately 114,100 barrels (bbls) of oil, 2.9 billion cubic feet (bcf) of natural gas and 76,200 bbls of NGL, which represent year-over-year increases of 4%, 2% and 7%, respectively, adjusted for asset sales. During the 2015 third quarter, the company had average curtailed production of approximately 51,000 boe per day. The company has increased its total 2015 production guidance to 670,000 – 680,000 boe per day, representing a 6% – 8% increase over 2014 results, adjusted for asset sales.

Capital Spending and Cost Overview

Chesapeake's 2015 third quarter drilling and completion capital expenditures decreased 41% sequentially to approximately $467 million, and capital expenditures for leasehold, geological and geophysical costs and other property, plant and equipment remained flat at approximately $57 million, for a total of approximately $524 million. Total 2015 third quarter capital expenditures of $623 million, including capitalized interest of $99 million, decreased 35% and 59% compared to 2015 second quarter and 2014 third quarter results, respectively, and are detailed in the table below. For 2015, the company has reduced its estimated total capital expenditures to $3.4 – $3.9 billion, compared to $3.5 – $4.0 billion as previously provided.

For earnings history and earnings-related data on Chesapeake Energy (CHK) click here.

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