Drop in quarter: Chesapeake Energy
Chesapeake sees losses in fourth quarter
US natural gas producer Chesapeake Energy saw a decline in fourth-quarter adjusted profit as energy prices tumbled, forcing it to halt expansion of production.
Shares of Chesapeake, after losing 8% in regular trade, fell as much as 5% in after-hours trading to as low as $16.25.
Profit excluding one-time items in the fourth quarter fell to $427 million, or 73 cents per share, from $466 million, or 93 cents per share, a year ago, said a Reuters report.
But including items, the company made a net loss of $866 million, or $1.51 per share, while quarterly revenue grew to $2.98 billion from $2.09 billion the year before.
Chief executive Aubrey McClendon said after accounting for asset impairments of about $1.8 billion in the fourth quarter, the company made 2008 net income of more than $600 million.
Chesapeake, like other energy producers, has said it would cut back on new drilling programmes because of natural gas prices, which have fallen by nearly 70% from the highs reached last July.
Last week, McClendon said the company had shelved a plan to sell assets in South Texas because of weak demand.
Chesepeake has struck joint venture deals with companies such as BP and StatoilHydro to help develop some its properties and reduce its financial risk.