The energy giant Chesapeake Energy Corporation (NYSE:CHK) reported its second quarter results today. The company earned a revenue of $3.4 Billion and net profit of $929 Million, or $1.29 per share. The nation’s second largest natural gas producer produced 347 billion cubic feet of natural gas equivalent (bcfe) in the second quarter. The quarterly profits have almost doubled from the April-June quarter last year, helped by asset sales.

Chesapeake Energy

In the 2012 second quarter, the daily total production increased 25 percent on the year-over-year basis, and 4 percent from the first quarter of this year. If the earnings from asset sales are excluded, the profits come down to 6 cents per share, which is less than 8 cents per share estimated by analysts. However, revenues were 2 percent higher, beating the analysts’ expectations.

Chesapeake Energy Corporation (NYSE:CHK) has sold assets worth $4.7 billion in the first half of 2012, and plans to sell another $7 billion in assets during the third quarter. The company expects to sell assets worth $13-14 billion this year to bring down the long-term debt to $9.5 billion by the year end.

“We are taking aggressive and focused actions to increase cash flow, and net asset value per share, while also reducing long-term debt, as we continue our ongoing transformation to a more balanced asset base between higher-margin liquids and lower-margin natural gas,” said Aubrey McClendon.

Chesapeake Energy Corporation (NYSE:CHK) is going through a rough patch due to sliding oil prices, and the disclosure of CEO Aubrey McClendon having borrowed over a billion from a company that deals with Chesapeake. In June, McClendon was removed from the post of chairman and half of the Chesapeake board was immediately changed, upon the insistence of activist investor Carl Icahn and Southeastern Asset Management. Currently, the IRS and SEC are both probing into the McClendon’s personal borrowing case.

Chesapeake Energy Corporation (NYSE:CHK) stock prices jumped 3.5 percent in extended trading to $18.32 per share. The company will hold a conference call tomorrow at 9 am to discuss the second quarter results.