Chesapeake Energy said sales plunged year-over-year, missing estimates, while the per-share net loss was worse than expected. The company, which has a market cap of $3.84 billion, said second-quarter sales fell 54% to $1.622 billion, below estimates for $1.93 billion. The net loss was $0.14, missing estimates for a loss of $0.10.
The losses were “primarily due to a decrease in the average realized commodity prices received for its production, unrealized losses from oil and natural gas derivatives and a decrease in the average realized commodity prices received for its marketing operations,” Chesapeake said. Â Debt is down by more than $1 billion so far this year.
The company said it plans to increase production by 3% year-over-year while maintaining expenditure guidance. Expenses will be lower and the company increased its target for total gross proceeds from asset divestitures to more than $2 billion, including unloading the Haynesville Shale acreage.
“We have made substantial progress on many fronts, including the reduction of more than $1 billion of debt, the reduction of complexity in our portfolio through the purchase of oil and natural gas interests” previously conveyed in payment transactions, Chief Executive Doug Lawler said. “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.”
Chesapeake, as with many energy companies, has suffered as oil prices dropped in the past two years amid rising production. Crude futures rebounded slightly earlier this year, but have again declined, falling below $40 briefly as producers brought rigs back online.
Energy services firm Baker Hughes said producers brought three more oil rigs back online last week, pushing the total to the highest since mid-March.
