Chesapeake Energy Corporation (CHK) Misses Earnings Expectations

Chesapeake Energy earnings

Chesapeake Energy Corporation (NYSE:CHK) released the earnings results from its fourth quarter of the year, greatly missing expectations. The company reported earnings of 27 cents per share, excluding items, on revenue of $4.54 billion. Analysts had been expecting Chesapeake to report 41 cents per share in earnings on $4.86 billion in revenue.

Breaking down Chesapeake Energy’s 4Q results

Chesapeake Energy Corporation (NYSE:CHK) reported net losses of 24 cents per share, including items. The company listed about $320 million in after-tax items. That’s compared to earnings of 26 cents per share in the same quarter a year ago.

The company’s adjusted EBITDA for the quarter was $1.132 billion—a 4% year over year increase. Cash flow was $995 million, a 13% decline. Chesapeake Energy Corporation (NYSE:CHK) attributed the decline to a $120 million negative impact from the extinguishment of financing options, $34 million in employee restructuring and termination costs and $37 million in charges related to the termination of rig lease commitments.

Chesapeake Energy Corporation (NYSE:CHK) reported a 2% year over year increase in average daily production, which brought it to 665 Mboe per day. Oil production rose 15% year over year to more than 111 Mbbls per day. Average daily production did decline 1% from the previous quarter, however, because of a planned reduction in well connections during the quarter. Chesapeake also finished most of its inventory reduction initiatives in the second and third quarters. In addition, the company reported negative impacts from severe weather in October and December.

Examining Chesapeake Energy’s full-year results

For the full year, Chesapeake Energy Corporation (NYSE:CHK) reported adjusted net income per share of $1.50, compared to 61 cents per share in the previous year. Adjusted EBITDA rose 34% to $5.016 billion. At the end of the year, the company had an increase in proved reserves, which went to 2.7 bboe. The company’s asset sales were $4.4 billion during the year, and it said that its 2014 asset sales were already completed or anticipated to total about $1 billion, excluding the possibility of selling its oilfield services division and other strategic assets.

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About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at

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