Chesapeake Energy beats by $0.01, beats on revs
- Reports Q1 (Mar) adjusted loss of $0.10 per share, $0.01 better than the Capital IQ Consensus of ($0.11); revenues fell 39.3% year/year to $1.95 bln vs the $1.02 bln Capital IQ Consensus.
- Average production expenses during 1Q16 were $3.36 per boe, a decrease of 31% from 1Q15.
- Average operated rig count for 1Q16 was 8 compared to 54 in year ago period.
- Average realized oil price per bbl was $37.74 vs. $65.73 in 1Q15.
- Average realized natural gas price per mcf was $2.29 vs. $3.67 in 1Q15.
- Asset Divestiture Update: In 2016, CHK has closed or has under signed sales agreements approximately $1.2 bln in gross proceeds from asset divestitures, or approximately $950 mln in net proceeds after certain related repurchases of Volumetric Production Payment obligations are met. Transactions signed since Feb 2016 include the sale of a portion of the company's acreage and producing properties in its STACK play in northern Oklahoma for approximately $470 mln to Newfield Exploration (NFX). Included in the sale are approximately 42,000 net acres and 400 producing wells which are currently producing 3,800 boe per day (approximately 55% liquids), net to CH. Substantially all of the company's announced asset divestitures are expected to close by the end of Q3. For the expected $950 mln in net proceeds currently closed or signed in 2016, the net impact to the company's production is projected to be a reduction of approximately 35,000 boe per day (approximately 60% natural gas)