Natural gas provider, Chesapeake Energy Corp. (NYSE:CHK) has reported sharper-than-expected adjusted second quarter 2011 earnings of 76 cents per share, striding ahead of the Zacks Consensus Estimate of 72 cents. The outperformance came on the back of a 62% expansion in liquid production volumes. The reported figure showed a modest improvement from the year-earlier profit of 75 cents.
Total revenue surged 65% year over year to $3,318 million from $2,012 million reported in the comparable period last year.
Operational Performance
Chesapeake’s average daily production in the quarter increased 9% year over year to 3.049 billion cubic feet equivalent (Bcfe), of which natural gas accounted for 84%. However, the volume dropped 2% sequentially due to the Fayetteville Shale
assets divestiture. The percentage of natural gas production to total volume decreased 6% on an annualized basis. However, natural gas production grew 3% and oil production expanded 62% from the year-ago level.
assets divestiture. The percentage of natural gas production to total volume decreased 6% on an annualized basis. However, natural gas production grew 3% and oil production expanded 62% from the year-ago level.
Natural gas equivalent realized price in the reported quarter was $6.07 per thousand cubic feet equivalent (Mcfe) versus $6.14 in the year-earlier quarter. Average realizations for natural gas were $5.19 per Mcf compared with $5.66 per Mcf in the year-earlier quarter. Liquids were sold at $65.23 per barrel, up from the year-ago price level of $61.43 per barrel.
Source: Daily Markets
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