Chesapeake Energy Corporation (NYSE:CHK), the second largest natural gas producer in the United States, reported a net loss of $2.06 billion to common shareholders, or $3.19 per fully diluted share during the third quarter, which ended September 2012.
During the same period in 2011, Chesapeake Energy Corporation (NYSE:CHK) reported a net income to common shareholders of $879 million, or $1.23 per fully diluted share.
Warren Buffett’s 2018 Activist Investment
Most investors are aware of Warren Buffett's most high profile long-term investments. However, there is one long term investment that is often overlooked. Q2 2020 hedge fund letters, conferences and more This is building materials maker USG, which was owned by Berkshire Hathaway for more than 17 years before it was acquired in 2018. If Read More
Chesapeake reported revenue of $3 billion during the past three months, from July to September. The company said its adjusted net income available to common shareholders was $33 million or $0.10 per fully diluted share. Its adjusted EBITDA was $1.02 billion.
During the third quarter, Chesapeake posted an operating cash flow of $1.1 billion on revenue pf $2.97 billion, and production of 381 billion cubic feet of natural gas equivalent (bcfe). Chesapeake Energy’s total operating expenses during the three months period was $6.1 billion.
Based on the financial statement of the company, Chesapeake Energy generated revenues of $1.43 billion from natural gas, oil, and NGL; $1.38 billion from marketing, gathering, and compression; and $152 million from oilfield services.
According to Chesapeake, its average daily production increased by 24 percent year-over-year, and 9 percent sequentially, to 4.142 Bcfe during the third quarter. Its average daily liquids production rose by 51 percent year-over-year, and 10 percent sequentially, to 143 Bbls; or a 21 percent increase in total production.
The company’s average daily oil production climbed by 96 percent year-over-year, or 21 percent sequentially, to 97,800 Bbls.
In a statement, Chesapeake Energy Corporation (NYSE:CHK) CEO Aubrey McClendon said, “We are pleased to report our liquids production continues its impressive growth, led by a 96% year-over-year and 21% sequential increase in our oil production. Three years ago, when Chesapeake Energy Corporation (NYSE:CHK) was producing only 33,000 bbls per day of liquids, we embarked on a strategy to transform our asset base from one focused almost exclusively on natural gas, to one that would provide more balance between liquids and natural gas production and that would likely also lead to higher returns on capital.”
In addition, McClendon said, Our current liquids production now exceeds 140,000 bbls per day, even after excluding 21,000 bbls per day, recently sold in the Permian transactions. We believe the company remains on target to reach our goal of 250,000 bbls per day of net liquids production in 2015.”
Furthermore, McClendon said he is pleased that the third quarter adjusted EBITDA and operating cash flow of the company increased by 27 percent and 25 percent respectively. He said, “Improving natural gas market fundamentals, combined with our increasing liquids production, the completion of our 2012-13 asset sales program, and our long-term debt reduction to below $9.5 billion, should enable Chesapeake Energy Corporation (NYSE:CHK) to continue making significant financial progress in the 2012 fourth quarter, and in 2013 as well.”