Oklahoma City’s Chesapeake Energy reported a $16 million second quarter net loss and a net loss of $40 million available to common stockholders on the heels of the company’s $2 billion sale of Utica Shale assets in Ohio. It also still has more than $9 billion in debt.
The earnings report released this week showed Chesapeake with $139 million in adjusted net income on nearly 530,000 barrels of oil equivalent a day in production. The production was up 8 percent compared to the second quarter of 2017.
Chesapeake’s average daily production in the second quarter of 2018 was about 90,000 barrels of oil a day which was up 11 percent from a year earlier. Its Powder River Basin production in Wyoming achieved a record daily rate of nearly 32,000 boe a day on July 22.
“For the third consecutive quarter, we have recorded impressive cash flow driven by better-than-expected oil production,” said Doug Lawler, Chesapeake’s President and Chief Executive Officer. “We expect to see continued meaningful improvements in growing our cash flow as our total oil production, adjusted for asset sales, moves higher throughout the rest of 2018 and into 2019.”
The company’s earnings before interest, taxes, depreciation and amortization for the 2018 second quarter was $382 million. But the adjusted net income for the company was $139 million while the company’s adjusted EBITDA was $536 million.
Chesapeake reported an average of 17 active rigs in the quarter compared to 19 a year earlier. The number of wells completed in the quarter was 85, down from the 107 last year at this time. The gross wells connected as 96, an increase of two over a year earlier.
Chesapeake also reported its principal debt outstanding as of the end of June was $9.706 billion, down from the $9.981 billion at the end of 2017.