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Chesapeake Results Exceed Wall Street Expectations

Chesapeake Energyreported results that surpassed what analysts expected Wednesday, helped by a 23 percent increase in production.

Natural Gas
Natural Gas

Chesapeake said it earned 70 cents a share on an adjusted basis in the third quarter, equal to what it earned on a per-share basis last year.

The profit was adjusted for one-time gains and losses that analysts typically do not take into account when figuring their estimates.

Sales for the most recent period jumped to $2.58 billion, up from $1.8 billion a year earlier.

Analysts who follow Chesapeake, a natural gas company that trades as a something of a proxy for the commodity, expected a profit of 64 cents a share on sales of $2.3 billion.

The company's shares moved lower after initially hopping more than 1 percent in extended trading Wednesday. Get after-hour quotes for Chesapeake Energy here.

Chesapeake's production averaged 3.043 billion cubic feet equivalent per day in the quarter, up 23 percent from a year ago.

Chesapeake stock closed more than 1 percent higher on the New York Stock Exchange on volume of more than 14 million shares.

The stock, which hit a high of near $75 in July 2008, has been range-bound from roughly $20 to $25 for most of 2010.

On a net profit basis that includes one-time investment gains and prior-year hedging losses, Chesapeake posted earnings of $558 million, or 75 cents a share. On the same basis, the company last year earned $192 million, or 30 cents a share.