After rising 6.2% during the day, Chesapeake Energy (CHK) shares fell after-hours following a weaker-than-expected earnings report. Shares initially fell about 3% and were more recently off by about 1%.
The company posted 18 cents of EPS, 10 cents below expectations. Revenue of $2.42 billion came in below expectations for $2.71 billion.
Daily production rose, however.
“Chesapeake�s daily production for the 2012 first quarter averaged 3.658 bcfe, an increase of 2% from the average 3.596 bcfe produced per day in the 2011 fourth quarter and an increase of 18% from the average 3.107 bcfe produced per day in the 2011 first quarter,” the company said.
CEO Aubrey McClendon said: “This quarter continued to see strong liquids production growth as we accelerate our ongoing shift to liquids, continuing success in keeping finding costs low, and the addition of a substantial amount of new proved reserves. This year�s capital expenditures will be front-end loaded, and for the remainder of the year we expect a significant decrease from the first quarter�s peak capital expenditure levels as we further reduce drilling activity in dry natural gas plays and reduce spending on new leasehold.”
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