Chesapeake Energy Corp. CHK reported adjusted second-quarter 2015 loss per share from continuing operations (excluding special items) of 11 cents, narrower than the Zacks Consensus Estimate of loss of 12 cents. The reported showed massive deterioration from from the year-earlier profit of 36 cents a share.
Quarterly sales decreased to $728.0 million from $1,704.0 million a year ago. The top line also missed the Zacks Consensus Estimate of $971.0 million.
Operational Performance
Chesapeake’s daily production for the reported quarter averaged approximately 70.3 million barrels of oil equivalent (MMBoe), reflecting a year-over-year increase of 13%. Average daily production consisted of approximately 119,500 barrels (bbls) of oil, 3.0 billion cubic feet (bcf) of natural gas and 79,200 bbls of NGL, which represent year-over-year increases of 11%, 11% and 24%, respectively.
Oil equivalent realized price in the reported quarter was $12.13 per boe. Average realizations for natural gas were $0.75 per Mcf. Oil was sold at $51.21 per barrel, while NGL was sold for $1.90 per barrel.
Total capital expenditures, including capitalized interest of $114 million, decreased to approximately $957 million from approximately $1.5 billion in the first quarter of 2015 and $1.6 billion in the second quarter of 2014.
On the cost front, quarterly production expenses were $4.32 per Boe, reflecting an decrease of 3.1% year over year.
Financials
At the end of the quarter, Chesapeake had a cash balance of $2,051 million. The debt balance was $10,655 million, representing a debt-to-capitalization ratio of 48.0%.
Zacks Rank
Chesapeake currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the same space are Seadrill Partners, LLC SDLP, Holly Energy Partners L.P. HEP and Valero Energy Partners, L.P. VLP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
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