Chesapeake Energy Earnings Sink, Taking CHK Stock for a Dip

The company could receive $1 billion from asset sales in 2014

   

Chesapeake Energy Earnings Sink, Taking CHK Stock for a Dip

On Wednesday, Chesapeake Energy (CHK) disappointed investors by missing quarterly estimates. CHK stock fell about 3% in pre-market trading.

Chesapeake Energy truck 630 300x224 Chesapeake Energy Earnings Sink, Taking CHK Stock for a Dip
Source: Flickr

Chesapeake Energy posted a fourth-quarter loss of $116 million. In the prior-year period, Chesapeake Energy reported earnings of $300 million. Adjusted EPS came in at 27 cents, but that fell far short of the 41 cents that analysts had forecast, the Wall Street Journal noted.

chesapeake Chesapeake Energy Earnings Sink, Taking CHK Stock for a Dip
CHK Stock: Chesapeake Energy Considering Sale or Spinoff of Oil Division

During the quarter, Chesapeake Energy generated revenue of $4.54 billion, up 28% year-over-year, but narrowly missing the $4.86 billion that Wall Street had expected.

The quarterly loss reported by Chesapeake Energy was due to one-time charges relating to asset sales and other extraordinary items. During the quarter, Chesapeake Energy said its average daily production climbed 15%.  A Chesapeake Energy executive said that the company had “good visibility” to receive $1 billion from asset sales this year.

Under CEO Doug Lawler – who succeeded ousted CEO Aubrey McClendon last year – Chesapeake Energy has been restructuring operations and changing its management team.

CHK stock closed at $27.29 a share on Tuesday. CHK stock has gained more than 35% over the past year.


Article printed from InvestorPlace Media, http://investorplace.com/2014/02/chesapeake-energy-earnings-sink-taking-chk-stock-dip/.

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