Chesapeake Energy reports improved earnings for 3Q

EXCLUSIVE Chesapeake Energy to name finance chief Domenic Dell'Osso as next  CEO -sources | Reuters

 

Chesapeake Energy reported its third quarter operations generated $443 million in operating cash flow allowing the company to end the quarter with $849 million cash on hand.

Chesapeake’s Board of Directors increased its base quarterly dividend on its common shares to $0.4375 per share, representing a 27% increase compared to the previous dividend amount. The base dividend will be payable on December 9, 2021 to shareholders of record at the close of business on November 24, 2021.

But the Oklahoma City company also reported a net loss of $345 million or $3.51 per diluted share. It also had adjusted net income of $269 million and $2.38 per share.

As a result of a growing operation, company leaders increased the remaining 2021 guidance but no change in capital spending. However, it also “significantly”  increased its preliminary 2022 guidance for adjusted EBITDAX.

Will Chesapeake Energy's Last Stand Work? | The Motley Fool

 

Chesapeake reported Tuesday it also intends to invest more than $30 million in ESG initiatives by the year end 2022 including retrofitting more than 19,000 pneumatic devices, thus reducing reported GHG emissions by nearly 40% and methane emissions by nearly 80%. The program was initiated in the 2021 third quarter, initially focusing on its Brazos Valley business unit.

All continuous methane emissions monitoring devices have been placed in the field in Chesapeake’s legacy Louisiana asset and efforts are underway to install these or similar devices under Project Canary’s TrustWell certification process in the newly acquired Vine acreage.

In Pennsylvania, Chesapeake anticipates completing installation of the methane monitoring devices in the 2021 fourth quarter with certification achieved by the end of the 2022 second quarter. At this point, Chesapeake expects to ultimately market approximately 3 billion cubic feet (bcf) per day of certified Responsibly Sourced Gas.

The third quarter report came a day after Chesapeake announced completion of its acquisition of Vine Energy, a move allowing the company to strengthen operations in the Haynesville Basin.

“Chesapeake has built significant momentum throughout this year as our employees continue to deliver outstanding results by maintaining their focus on the execution of our strategy – maximizing sustainable cash flow through our high return drilling program, building inventory by reducing our breakeven levels in all assets and reducing operating costs,” said Nick Dell’Osso, Chesapeake’s President and Chief Executive Officer.
Chesapeake Energy Names Finance Head Nick Dell'Osso as Next CEO | Hart  Energy
Chesapeake is currently operating eleven rigs across all its business units, with three rigs in Appalachia, six rigs located in the Gulf Coast, one rig in the South Texas Eagle Ford Shale and one rig in the Powder River Basin.
In Pennsylvania, Chesapeake anticipates completing installation of the methane monitoring devices in the 2021 fourth quarter with certification achieved by the end of the 2022 second quarter. At this point, Chesapeake expects to ultimately market approximately 3 billion cubic feet (bcf) per day of certified Responsibly Sourced Gas.
Chesapeake increased its expected 2021 adjusted EBITDAX range to approximately $2.1 to $2.2 billion, up from $1.8 to $1.9 billion previously, and incorporating the earlier than expected closing of the Vine acquisition. In addition, the company increased its total annual production while maintaining its commitment to disciplined spending with no change to its previous capital program. Additionally, Chesapeake increased its preliminary 2022 adjusted EBITDAX outlook to $3.2 to $3.4 billion, up from $2.55 to $2.75 billion, with projected results largely based on recent commodity prices. The company expects to seek Board approval of its 2022 capital program later in the month and plans to provide formal 2022 guidance in early 2022.
Click here for Chesapeake release
%d bloggers like this: