Chesapeake Energy released its latest earnings report before opening bell this morning, posting adjusted earnings of 9 cents per share on $2.28 billion in revenue. Analysts had been expecting losses of 3 cents per share on $1 billion in revenue. In last year’s third quarter, the energy giant reported losses of 5 cents per share on $3.38 billion in revenue.

Chesapeake Energy

Chesapeake Energy returns strong numbers across the board

GAAP losses were $1.54 per share or $1.2 billion, compared last year’s net losses of $7.08 per share or $4.7 billion. Adjusted EBITDA was $421 million. Oil and gas revenue declined to $1.18 billion from $1.36 billion in the same quarter a year ago. Analysts had been looking for $1.02 billion. Marketing and other revenue came in at $1.1 billion, a decline from last year’s $2.01 billion but better than the consensus of $1.23 billion.

Chesapeake Energy said it products 59 million barrels of oil equivalent during the third quarter, compared to 61 million last year. Analysts had been expecting 61.6 million barrels of oil equivalent. Oil production declined to 8 million barrels, compared to the consensus of 8.2 million barrels and last year’s 11 million barrels. The company produced 86,600 barrels of oil per day, while average production was 638,100 barrels of oil equivalent per day. Daily natural gas production averaged 2.914 billion cubic feet, while natural gas liquids production averaged 65,700 barrels per day.

Chesapeake Energy updates outlook

For the fourth quarter, Chesapeake Energy expects to produce between 56 million and 60 million barrels of liquids and between 33 million and 35 million barrels of oil. The company looks to produce between 23 million and 25 million barrels of natural gas liquids.

The company continues to sell and divest assets as it deals with its ongoing debt problem. During the third quarter, it agreed to sell its Barnett Shale operating areas in North Texas to Total S.A. The deal closed on Oct. 31, and Chesapeake shelled out $334 million to terminate the gathering agreement it had with Williams Partners L.P. The company also agreed to sell most of its upstream and midstream assets in the Devonian Shale in West Virginia and Kentucky.

Shares of Chesapeake Energy surged in premarket trades, climbing as much as 5.65% to $5.61.