Chesapeake Energy reported it had the highest quarterly adjusted free cash flow in the first quarter of 2022, the highest quarterly amount in company history.
The Oklahoma City-based company reported its quarterly net cash provided by operating activities totaled $853 million and adjusted EBITDAX was $913 million. It also had $19 million of cash on hand at the end of the quarter.
Still, the company also had a net loss of $764 million or $6.32 per diluted share while adjusted net income was $436 million or $3.09 per diluted share.
As a result, Chesapeake plans to issue a quarterly dividend of $2.34 per common share consisting of a variable dividend of $1.84 per common share and a quarterly base dividend of 50 cents a common share. The dividend will be payable June 2 to shareholders of record at the close of business on May 19, 2022.
Chesapeake leaders said during the first quarter their share repurchase program retired $83 million of common shares and more repurchases are expected in the second quarter.
The company leadership increased its 2022 adjusted EBITDAX guidance to $4.6 to $4.8 billion from a previous range of about $4 billion. Chesapeake also increased its 2022 adjusted free cash flow estimate from about $2.1 billion up to $2.6 to $2.8 billion.
“Momentum continues to build for Chesapeake as we execute our returns-focused strategy,” said Nick Dell’Osso, Chesapeake’s President and Chief Executive Officer.
” Importantly, as recent events bring the focus of energy security back to the forefront of policy discussions across the globe, Chesapeake remains uniquely positioned to deliver reliable, affordable and lower carbon energy the world desperately needs.”
Chesapeake’s net production rate in the first quarter of 2022 was approximately 620,000 boe per day (approximately 87% natural gas and 13% total liquids), utilizing an average of 13 rigs to drill 41 wells and place 43 wells on production.
On March 9, 2022, Chesapeake closed its previously announced acquisition of Chief E&D Holdings, LP and affiliates of Tug Hill, Inc. Chesapeake expects the integration of the Chief and Tug Hill assets into its legacy Marcellus Shale operations to be largely completed by the third quarter of 2022. Additionally, on March 25, 2022, Chesapeake closed its previously announced sale of its Powder River Basin asset.
Source: Chesapeake press release
