Chesapeake Energy released the earnings results from its first fiscal quarter before opening bell this morning, beating estimates for earnings but missing big-time on revenue. The energy giant posted adjusted earnings of 11 cents per share on $2.76 billion in revenue. Analysts had been looking for earnings of 4 cents per share and $3.68 billion in revenue.

Chesapeake Energy Corporation Beats On Earnings, Misses Revenue

In last year’s first quarter, Chesapeake reported earnings of 59 cents per share and $5.05 billion in revenue.

Key metrics from Chesapeake’s earnings report

Chesapeake Energy posted adjusted EBITDA of $928 million, compared to last year’s $1.515 billion, and net losses of $5.7 per share or $3.782 billion for the quarter. In the same quarter last year, the energy giant reported net earnings of 54 cents per share or $374 million. Chesapeake said the declines in adjusted EBITDA and operating cash flow, which fell from $1.614 billion to $910 million, were mostly due to tumbling realized oil, natural gas and natural gas liquid prices.

“Our cash costs remain at industry-low levels and we expect our assets to continue delivering greater efficiencies even as we reduce our activity levels throughout 2015, Chesapeake CEO Doug Lawler said in a statement this morning. “We remain on target to balance our capital spending and our cash flow by year-end, and the capital efficiencies that we are seeing in each of our operating areas are helping to strengthen that cash flow.”

Chesapeake Energy grows production

The company grew production by 14% during the quarter, bringing its average daily production up to about 686,000 barrels of oil equivalent after adjusting for asset sales. Production included about 121,900 barrels of oil (a 17% increase), 2.9 billion cubic feet of natural gas (a 12% increase) and 75,800 barrels of natural gas liquids (a 19% increase).

Chesapeake added between 600 and 700 new locations in Eagle Ford after receiving the results from down spacing tests. The energy giant spent about $1.3 billion on capital expenditures for drilling and completion and about $63 million for leasehold, geological, and geophysical costs and other property, plant, and equipment.

Chesapeake Energy raises production guide

Guidance for total production for the 2015 fiscal year was increased to between 640 million barrels of oil equivalent per day to 650 million barrels of oil equivalent per day. Chesapeake Energy reiterated its guidance for between $3.5 billion and $4 billion in capital expenditures this year.