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.
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.