Chesapeake Energy Corp. on Aug. 10 raised its full-year forecasts for adjusted core income and production after beating Wall Street estimates for the second quarter.
The company also initiated a variable return program to deliver 50% of free cash flow to shareholders on a quarterly basis, payable in the first quarter of 2022.
Once the second-largest U.S. natural gas producer, Chesapeake filed for court protection last June, saddled with more than $9 billion debt from overspending on assets and a sudden decline in oil prices.
After emerging from bankruptcy in February, Chesapeake endured senior management shakeups, with Chief Executive Officer Doug Lawler leaving the company in April. It also said in June that three top executives would leave the company.
The company's net long-term debt stood at $1.26 billion as of June 30.
Chesapeake increased its expected 2021 adjusted EBIDAX (earnings before interest, taxes, depreciation, amortization, and exploration expense) range by 16% to between $1.8 billion and $1.9 billion.
The company also boosted its total annual production forecast to 415,000 to 435,000 barrels of oil equivalent per day (boepd), from its previous range of 410,000 boepd to 420,00 boepd.
Chesapeake kept its full-year capital expenditure outlook unchanged at $670 million to $740 million.
The Oklahoma City-based oil and gas producer said it achieved an average net production rate of about 433,000 boepd in the second quarter.
It posted an adjusted profit of $1.64 per share for the quarter ended June 30, beating the average analyst estimate of $1.20, according to Refinitiv IBES.
Chesapeake added that it is currently operating seven rigs—three in the Marcellus Shale in Pennsylvania, three in the Haynesville Shale in Louisiana and one in the South Texas Eagle Ford Shale.
Recommended Reading
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Equinor Acquires Stake in Standard Lithium Smackover Projects
2024-05-08 - Equinor’s transaction, completed effective May 7, includes interests in Standard Lithium’s flagship South West Arkansas Project and East Texas properties.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.
Permian Resources Adds More Delaware Basin Acreage
2024-05-07 - Permian Resources also reported its integration of Earthstone Energy’s assets is ahead of schedule and raised expected annual synergies from the deal.