We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Chesapeake (CHK) Posts Strong Q1 Earnings on Higher Output
Read MoreHide Full Article
Chesapeake Energy Corporation (CHK - Free Report) reported strong first-quarter 2018 earnings, courtesy of higher oil equivalent production and price realizations. As a result, in the premarket trading, the stock gained more than 3%.
Earnings per share (excluding special items) of 34 cents surpassed the Zacks Consensus Estimate of 25 cents and the year-ago 23 cents.
Total revenues fell to $1,243 million from $1,469 million a year ago. The top line also fell shy of the Zacks Consensus Estimate of $1,297 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 50 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of 4.2%. Production consisted of approximately 8 million barrels (MMbbls) of crude (flat year over year), 222 billion cubic feet (bcf) of natural gas (up 5.2%) and 5 MMbbls of NGL (flat).
Oil equivalent realized price — excluding unrealized gains (losses) on derivatives — in the reported quarter was $27.31 per barrel of oil equivalent, up 13.5% year over year.
Total capital expenditure increased to $611 million from $576 million in the first quarter of 2017.
On the cost front, quarterly production expenses increased 3.5% year over year to $2.94 per Boe.
Expenses
Total first-quarter 2018 operating expenses were $2,211 million, down almost 12% year over year.
Financials
At the end of the first quarter, Chesapeake had cash balance of $4 million. Net long-term debt totaled $9,325 million.
The company could lower its long-term debt by roughly $581 million. This was possible as Chesapeake managed to generate record net quarterly cashflow of $609 million — the most in roughly three years.
Q1 Price Performance
During first-quarter 2018, Chesapeake lost 23.8% compared with the industry’s decline of 4.1%.
Guidance
Chesapeake’s production guidance for 2018 is maintained at the range of 515,000-550,000 Boe per day. Moreover, the capital budget projection for 2018 has been reiterated at $1,975-$2,375 million.
Baytex managed to beat the Zacks Consensus Estimate in the last three quarters.
W&T Offshore, Inc. will likely post earnings growth of 7.1% in 2018.
Canadian Natural is expected to see year-over-year earnings growth of 151.1% in 2018.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Chesapeake (CHK) Posts Strong Q1 Earnings on Higher Output
Chesapeake Energy Corporation (CHK - Free Report) reported strong first-quarter 2018 earnings, courtesy of higher oil equivalent production and price realizations. As a result, in the premarket trading, the stock gained more than 3%.
Earnings per share (excluding special items) of 34 cents surpassed the Zacks Consensus Estimate of 25 cents and the year-ago 23 cents.
Total revenues fell to $1,243 million from $1,469 million a year ago. The top line also fell shy of the Zacks Consensus Estimate of $1,297 million.
Operational Performance
Chesapeake’s production in the reported quarter was approximately 50 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of 4.2%. Production consisted of approximately 8 million barrels (MMbbls) of crude (flat year over year), 222 billion cubic feet (bcf) of natural gas (up 5.2%) and 5 MMbbls of NGL (flat).
Oil equivalent realized price — excluding unrealized gains (losses) on derivatives — in the reported quarter was $27.31 per barrel of oil equivalent, up 13.5% year over year.
Total capital expenditure increased to $611 million from $576 million in the first quarter of 2017.
On the cost front, quarterly production expenses increased 3.5% year over year to $2.94 per Boe.
Expenses
Total first-quarter 2018 operating expenses were $2,211 million, down almost 12% year over year.
Financials
At the end of the first quarter, Chesapeake had cash balance of $4 million. Net long-term debt totaled $9,325 million.
The company could lower its long-term debt by roughly $581 million. This was possible as Chesapeake managed to generate record net quarterly cashflow of $609 million — the most in roughly three years.
Q1 Price Performance
During first-quarter 2018, Chesapeake lost 23.8% compared with the industry’s decline of 4.1%.
Guidance
Chesapeake’s production guidance for 2018 is maintained at the range of 515,000-550,000 Boe per day. Moreover, the capital budget projection for 2018 has been reiterated at $1,975-$2,375 million.
Zacks Rank & Key Picks
Chesapeake carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space are Baytex Energy Corp. (BTE - Free Report) , W&T Offshore, Inc. (WTI - Free Report) and Canadian Natural Resources Limited (CNQ - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baytex managed to beat the Zacks Consensus Estimate in the last three quarters.
W&T Offshore, Inc. will likely post earnings growth of 7.1% in 2018.
Canadian Natural is expected to see year-over-year earnings growth of 151.1% in 2018.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>