Barnett flows bolster Chesapeake
US natural gas producer Chesapeake Energy said today its adjusted
fourth-quarter profit rose, helped by a 34% increase in production.
Excluding certain items, net income available to shareholders in the quarter
was $466 million, or 93 cents per diluted share, compared with $418 million,
or 90 cents per diluted share in the same period a year ago.
Among items excluded were a $180 million loss related to hedging and a $128
million reduction in income from exchanges of the company's preferred stock
for common stock.
Analysts, on average, had expected a profit of 81 cents per share on that
basis, according to Reuters Estimates.
The Oklahoma City-based company, which has large operations in the Barnett
Shale in North Texas, said its average daily production was 2.2 billion
cubic feet equivalent per day, up from 1.7 Bcm per day in the year-ago
quarter.
At the end of 2007, Chesapeake had reserves of 10.879 trillion cubic feet
equivalent, up 21% from 2006. The reserve replacement rate was 369%.
Revenue rose to $2.09 billion from $1.87 billion.
Ahead of the earnings announcement, Chesapeake shares closed down 1.5% at
$44.18 on the New York Stock Exchange.
22 February 2008 09:12 GMT
| last updated:
22 February 2008 09:12 GMT
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