After emerging from Chapter 11 bankruptcy and restructuring, Oklahoma City-based Chesapeake Energy reported it not only generated $409 million in first quarter 2021 operating cash flow, it ended the quarter with $340 million in unrestricted cash on hand.
The company had nearly $500 million unrestricted cash on hand at the end of April and created a strong enough liquidity position that its Board of Directors declared an annual dividend of $1.375 per common share.
The dividend will be paid quarterly, with the first such payment to be payable on June 10, 2021 to shareholders of record at the close of business on May 24, 2021.
“Our strong first quarter results demonstrate the significant value creating opportunities that lie ahead for Chesapeake,” said Mike Wichterich, Chesapeake’s Board Chairman and Interim Chief Executive Officer.
Chesapeake achieved an average net production rate of approximately 436,000 barrels of oil equivalent per day (approximately 77 percent natural gas and 23 percent total liquids) during the 2021 first quarter. Chesapeake is currently operating seven rigs across its portfolio, with three rigs in Appalachia, three rigs in Haynesville and one rig in South Texas.
The company announced that it expects total production levels in 2022 to remain flat to 2021, with natural gas increasing to approximately 85% of the total production mix for 2022.
Chesapeake emerged from bankruptcy in early February and qualified for and applied fresh start accounting, thus it does not have comparative quarterly earnings reports.
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