Chesapeake Energy Earnings Are Light but Revenue Beats
Chesapeake Energyposted a jump in second-quarter profit on Monday after it sold its midstream subsidiary and said it expects to sell another $7 billion in assets during the current quarter.
After the earnings announcement, the company's shares rosein trading after the closing bell. (Click here to get the latest quotes for Chesapeake.)
The company, the nation's second biggest producer of natural gas, expects to sign three deals for its 1.5 million acres in the Permian Basin in West Texas, easing investor worry about the need for the cash-strapped company to raise funds.
Net income in the quarter was $929 million, or $1.29 per share, up from $467 million, or 68 cents per share, in the same period a year ago.
Excluding the $584 million gain from sale of its Chesapeake Midstream Partners, a $490 million gain in the value of its energy derivative positions, and other one-time items, earnings per share were 6 cents, the company said, down sharply from 76 cents a share in the year-earlier period.
Revenue increased 2 percent to $3.4 billion from $3.32 billion a year ago.
Revenue topped expectations but earnings fell short: Analysts had expected the company to report earnings excluding items of 7 cents a share on $2.44 billion in revenue, according to a consensus estimate from Thomson Reuters.