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[h=2]Temasek’s investee company Chesapeake crashes to $2.05bn loss[/h]
November 2nd, 2012 |
Author: Online Press
(1 Nov) – Beleaguered land explorer Chesapeake Energy fell to a $2.05bn third-quarter loss on huge impairment charges, hedging losses and low natural gas prices, the company said Thursday.
In the three months to September, the company took a $2.02 billion writedown on oil and gas properties, a $63 million charge in natural gas and oil derivatives hedging and an additional $28 million in writedowns.
On the plus side, the company saw its oil production nearly double to 89,960 barrels, while overall production gained 24% year-over-year to 4.14 billion cubic feet equivalent per day.
“Improving natural gas market fundamentals, combined with our increasing liquids production, the completion of our 2012-13 asset sales program and our long-term debt reduction to below $9.5 billion, should enable Chesapeake to continue making significant financial progress,” chief executive Aubrey McClendon said in a statement.
The company has been aiming to right its course after numerous corporate governance setbacks this year, including investigations into loans taken by McClendon on stakes in wells and collusion between the company and its competitors in regard to land sales in Michigan.
It has pledged to clean up expenses and governance and sell off assets to strengthen its capital position.
According to Reuters, Wall Street expected 10 cents per share excluding items, which the company matched.
Revenue shrunk to $2.97 billion from $3.97 billion in the year-ago quarter, while total sales of oil and natural gas fell to $1.43 billion from $2.4 billion in 2011’s third quarter.
That came as the company saw average sales prices fall to $1.80 per mcf of natural gas from $3.39 in the year-ago quarter and to $31.22 for natural gas liquids from $44.04 a year ago.
Adjusted EBITDA was $1.02 billion, shrinking from $1.38 billion in the year-ago quarter.
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[Source]: http://www.upstreamonline.com/live/article1268894.ece
Related: Temasek Holdings’ investee company, Chesapeake Energy, downgraded to “Junk” by S&P
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In the three months to September, the company took a $2.02 billion writedown on oil and gas properties, a $63 million charge in natural gas and oil derivatives hedging and an additional $28 million in writedowns.
On the plus side, the company saw its oil production nearly double to 89,960 barrels, while overall production gained 24% year-over-year to 4.14 billion cubic feet equivalent per day.
“Improving natural gas market fundamentals, combined with our increasing liquids production, the completion of our 2012-13 asset sales program and our long-term debt reduction to below $9.5 billion, should enable Chesapeake to continue making significant financial progress,” chief executive Aubrey McClendon said in a statement.
The company has been aiming to right its course after numerous corporate governance setbacks this year, including investigations into loans taken by McClendon on stakes in wells and collusion between the company and its competitors in regard to land sales in Michigan.
It has pledged to clean up expenses and governance and sell off assets to strengthen its capital position.
According to Reuters, Wall Street expected 10 cents per share excluding items, which the company matched.
Revenue shrunk to $2.97 billion from $3.97 billion in the year-ago quarter, while total sales of oil and natural gas fell to $1.43 billion from $2.4 billion in 2011’s third quarter.
That came as the company saw average sales prices fall to $1.80 per mcf of natural gas from $3.39 in the year-ago quarter and to $31.22 for natural gas liquids from $44.04 a year ago.
Adjusted EBITDA was $1.02 billion, shrinking from $1.38 billion in the year-ago quarter.
.
[Source]: http://www.upstreamonline.com/live/article1268894.ece
Related: Temasek Holdings’ investee company, Chesapeake Energy, downgraded to “Junk” by S&P
Rate this (5 Votes)
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