Shale oil producers Chesapeake Energy Corp. and Devon Energy Corp. on Nov. 2 topped Wall Street earnings estimates, as energy demand recovered from the pandemic slump and prices hit multiyear highs.
Chesapeake Energy’s third-quarter adjusted net income was $269 million, or $2.38 per share, topping forecasts of $1.68 per share, according to Refinitiv IBES. Devon reported adjusted net income of $733 million, or $1.08 per share, beating expectations of 93 cents a share, according to IBES data.
Producers are benefiting from a run-up in oil and natural gas prices, as the market rebounds from blistering losses during the pandemic. WTI futures are trading around $84/bbl—a level not seen since 2014, while Henry Hub natural gas futures are around $5.53 per MMBtu, near a seven-year high.
Despite soaring prices, most publicly traded energy companies have vowed to focus on shareholder returns over increasing production. On Nov. 2, Chesapeake and Devon said they anticipated full-year output at or above the upper end of their forecasts, while spending would remain within anticipated ranges.
Devon on Nov. 2 also said its board had authorized a $1 billion share-repurchase program, which represents 4% of its market cap.
Shares of Devon were up 5.5% in after-hours trading to $44.30, while Chesapeake rose 2.14% to $66.77.
Devon said its 2021 production and capital spending would come in at the upper end of its guidance range. Its third-quarter production averaged 608,000 boe/d and the company said it anticipates production next year in the range of 570,000 to 600,000 boe/d.
Chesapeake forecast 2021 adjusted EBITDAX, which excludes exploration expenses, of $2.1 billion to $2.2 billion, up from $1.8 billion to $1.9 billion previously, and increase its total production while holding capital spending steady.
Meanwhile, rival Comstock Resources slightly missed Wall Street estimates, reporting adjusted net income of $91 million, or 34 cents a share, versus estimates of 35 cents a share, according to IBES.
Recommended Reading
Waterous Raises $1B PE Fund for Canadian Oil, Gas Investments
2025-04-01 - Waterous Energy Fund (WEF) raised US$1 billion for its third fund and backed oil sands producer Greenfire Resources.
Artificial Lift Firm Flowco’s Stock Surges 23% in First-Day Trading
2025-01-22 - Shares for artificial lift specialist Flowco Holdings spiked 23% in their first day of trading. Flowco CEO Joe Bob Edwards told Hart Energy that the durability of artificial lift and production optimization stands out in the OFS space.
Shell Raises Shareholder Distributions and LNG Sales Target, Trims Spending
2025-03-25 - Shell trimmed its annual investment budget to a $20 billion to $22 billion range through 2028 after spending $21.1 billion last year.
More Players, More Dry Powder—So Where are the Deals?
2025-03-24 - Bankers are back and ready to invest in the oil and gas space, but assets for sale remain few and far between, lenders say.
USD Partners Expects to Sell Final Asset by Mid-April
2025-01-22 - USD Partners was obligated to sell the Hardisty terminal after entering a forbearance agreement with its lenders in June 2024.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.