Chesapeake Energy Corporation, Plug Power Inc Earnings Report

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Chesapeake Energy and Plug Power released their latest earnings reports before opening bell this morning. Chesapeake posted losses of 14 cents per share, which was worse than the consensus of 11 cents per share in losses, on $1.62 billion in revenue. Again, that missed consensus, which stood at $1.91 billion.

Plug Power posted adjusted losses of 4 cents per share on adjusted revenues of $37.9 million. Wall Street had been expecting non-GAAP losses of 6 cents per share on $25.32 million in revenue.

Chesapeake Energy posts a net loss

Chesapeake Energy’s net loss was $2.48 per share, and its EBITDA was -$1.394 billion. Adjusted EBITDA was $252 million. The company was hit hard by falling commodity prices as the 54% plunge in revenue was mostly due to the decline in the average realized commodity prices, unrealized losses from oil, and natural gas derivatives. Chesapeake Energy said it has reduced its debt by more than $1 billion so far year to date.

During the second quarter, it averaged about 657,100 barrels of oil equivalent per day. It also raised its full-year production outlook 3% but maintained its guidance for capital expenditures. The average daily production included about 90,500 barrels of oil, 2.96 billion cubic feet of natural gas and 73,200 barrels of natural gas liquids.

“Financial discipline remains our top priority, and we continue to work toward additional solutions to improve our liquidity, reduce our midstream commitments and enhance our margins,” said Chesapeake Energy CEO Doug Lawler in a statement. “With continued improvements in our operating expenses and the disposition of non-core properties, we have refined our portfolio to provide a more competitive foundation for Chesapeake.”

Shares of Chesapeake Energy slipped by as much as 2.65% to $5.15 in premarket trading.

Plug Power surges after earnings beat

Plug Power’s GAAP losses were 7 cents per share, while its GAAP revenue came in at $20.5 million, compared to $24 million last year. The hydrogen fuel cell system maker said recurring revenue grew 99% year over year in service and fuel delivery. Bookings amounted to $63 million in the second quarter, bringing the company to $135 million in bookings for the year so far.

Plug Power added that new customers made up more than 60% of bookings during the quarter with four new GenKey wins driving the bookings. The bookings include first-time Plug Power fuel cell users deploying turkey systems. The company deployed 926 GenDrive units during the quarter, compared to 888 in the year-ago quarter. It also completed hydrogen infrastructure at six sites, which is double the number it completed in last year’s second quarter.

“New large-scale accounts, significant traction in Europe and continued margin improvements keep us on track for achieving our targeted 2016 goals,” Plug Power Chief Executive Andy Marsh said in a statement. “Continued strong commercial progress combined with a focus on research and development will ensure Plug Power’s leadership in current and future markets.”

Plug Power shares surged in premarket trading, climbing by as much as 6.4% to $1.83.

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