Chesapeake Energy (CHK) Tops Q1 EPS by 90c

May 11, 2021 4:04 PM EDT
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Price: $62.00 -0.77%

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Production taxes: 19M

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Chesapeake Energy (NASDAQ: CHK) reported Q1 EPS of $2.75, $0.90 better than the analyst estimate of $1.85.

  • Successor net income totaled $295 million, or $2.75 per diluted share
  • Generated adjusted EBITDAX (a non-GAAP measure) of $510 million for the combined 2021 Successor and Predecessor Periods (January 1, 2021 - March 31, 2021)
  • March 31, 2021 unrestricted cash balance of $340 million; reducing March 31, 2021 net debt (a non-GAAP measure) to adjusted 2021E EBITDAX ratio to 0.6x
  • Launched sustainable dividend at an initial annual rate of $1.375 per share to be paid quarterly beginning in the 2021 Second Quarter; base dividend built to withstand commodity price volatility with incremental cash return strategy to be defined by year end 2021
  • Increased five-year cumulative free cash flow (a non-GAAP measure) outlook to ~$3 billion

Mike Wichterich, Chesapeake's Board Chairman and Interim Chief Executive Officer, commented, "Our strong first quarter results demonstrate the significant value creating opportunities that lie ahead for Chesapeake. We are committed to returning meaningful cash to our shareholders and are pleased to announce a highly competitive dividend that is built to withstand commodity price cycles. With our talented employees, pristine balance sheet, operational leadership, and free cash flow outlook, I firmly believe Chesapeake is poised to deliver differential returns to our shareholders."

Outlook and Guidance Update

Today, Chesapeake released its first complete post-restructuring guidance and outlook for the full year 2021, including full-year cost estimates and projections for production and capital expenditures. In addition, the company announced that it expects total production levels in 2022 to remain flat to 2021, with natural gas increasing to approximately 85% of the total production mix for 2022.

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

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