Current CHK Stock Info

Chesapeake Energy Corporation (NYSE:CHK) reported financial and operational results for the 2018 second quarter.

Highlights

  • Net loss available to common stockholders of $40 million, or $(0.04) per diluted share
  • Adjusted net income attributable to Chesapeake of $139 million, or $0.15 per diluted share
  • Average production of approximately 530 MBOEPD up 8% YOY
  • Average oil production of approximately 90 MBOEPD, up 11% YOY
  • Powder River Basin (PRB) production achieved a record daily rate of approximately 32 MBOEPD on July 22

Late in Q2 Chesapeake sold its Utica assets to settle $2 billion of outstanding debt. Bringing its outstanding debt to approximately $9.7 billion and its borrowing capacity on its revolving credit facility to $3.8 billion.

Chesapeake reported a net loss of $16 million despite reducing production expenses to $2.86 per BOE, compared to $2.92 per BOE YOY and seeing an average production of 530 MBOEPD.

Chesapeake’s total CapEx for Q2 was approximately $595 million including capitalized interest of $43 million, compared to approximately $667 million YOY. Chesapeake looks to see increased production out of the PRB and stable production from the Eagle Ford.

New growth engine

In its 2Q release, Chesapeake said, “The Powder River Basin (PRB) in Wyoming is quickly establishing itself as the growth engine of the company… .”

In July 2018, Chesapeake moved to five rigs in the PRB, all of which are primarily focused on the Turner formation. The company placed nine wells on production during the 2018 second quarter and expects to place 14 wells on production during the 2018 third quarter and 14 wells on production during the 2018 fourth quarter. Chesapeake is also considering the addition of a sixth rig in 2019 if growth potential is offered by its Teapot, Parkman, Niobrara, Sussex, and Mowry assets.

In Q2 the Eagle ford had 48 wells place on production and currently has four rigs operating in the basin. Q3 for the Eagle Ford is expected to have 38 wells come on production and 47 in Q4.

To support anticipated rig activity, Chesapeake recently reached an agreement with Williams Partners, L.P. and Crestwood Equity Partners, L.P. for an expansion of their existing gas gathering system and processing facility at the existing competitive fee-rate structure.

Read the complete Chesapeake 2Q release here.


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