Chesapeake Energy (CHK) Misses Q2 EPS by 3c; Increases Divestiture Proceeds Outlook
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Chesapeake Energy (NYSE: CHK) reported Q2 EPS of ($0.14), $0.03 worse than the analyst estimate of ($0.11). Revenue for the quarter came in at $1.62 billion versus the consensus estimate of $1.91 billion.
- Company increases target of 2016 total gross proceeds from asset divestitures by year-end to more than $2.0 billion from $1.2 to $1.7 billion; selected Haynesville Shale acreage expected to be sold
Doug Lawler, Chesapeake's Chief Executive Officer, commented, "In 2016, we have made substantial progress on many fronts, including the reduction of more than $1 billion of debt, the reduction of complexity in our portfolio through the purchase of oil and natural gas interests previously conveyed in certain volumetric production payment transactions (VPPs), the continued improvement in our cash cost structure and the optimization of our current portfolio through non-core asset sales.
"Financial discipline remains our top priority, and we continue to work toward additional solutions to improve our liquidity, reduce our midstream commitments and enhance our margins. With continued improvements in our operating expenses and the disposition of non-core properties, we have refined our portfolio to provide a more competitive foundation for Chesapeake. In addition, the application of new technologies, including longer laterals and enhanced completion techniques, to our extensive undeveloped acreage position provides us with a robust portfolio of development opportunities."
Lawler continued, "As a result of our portfolio's strong performance to date in 2016, we have increased our total production guidance for the remainder of the year. As for an initial look into 2017, we believe our oil production will be relatively flat in 2017 as compared to 2016, while total production volumes are projected to be down approximately 5% compared to 2016 levels. With the breadth and depth of our large acreage position, the evolution of technologies being applied to our portfolio and the reduction in our leverage and complexity, we believe that the next few months will be a very exciting time for Chesapeake."
For earnings history and earnings-related data on Chesapeake Energy (CHK) click here.
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