Chesapeake Energy Earnings Sink, Taking CHK Stock for a Dip

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

   

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

Chesapeake Energy truck 630
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.

CHK Stock: Chesapeake Energy Considering Sale or Spinoff of Oil Division
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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