Chesapeake Energy (CHK), the second largest producer of natural gas, reported Q1 adjusted EPS of $0.75. This topped industry estimates of $0.70 per share. Revenue fell 43% to $1.6 billion compared to the same period last year. The company attributed the fall in revenue to a decrease in the price of natural gas. CHK realized a sales price of $5.31 per million cubic feet of natural gas compared to a price of $6.31 a year ago. Production increased 20% on a per day basis to about 3.12 billion cubic feet of gas.
The company announced a one-time charge of $725 million due to a loss in its hedging operations. According CEO Aubrey McClendon, CHK has met its goal of reducing debt by 25%. The company is also finalizing its purchase of Bronco Drilling Company Inc. (BRNC) for $315 million. The acquisition would include 22 high-quality drillings rigs. Chesapeake is already the most active driller of new wells in the United States.
Alex Perez, Energy Junior Analyst