Chesapeake Energy Posts 1Q $6B Loss

MARK WILLIAMS

COLUMBUS, Ohio (AP) — Chesapeake Energy on Monday posted a nearly $6 billion loss for the first quarter as tumbling natural gas prices forced one of the nation's largest gas producers to write down the value of its gas and oil properties.

Oklahoma City-based Chesapeake said it lost $5.7 billion, or $9.63 per share, for the quarter ended March 31 compared with a loss of $132 million, or 29 cents a share, in the year-ago quarter.

Excluding special charges, Chesapeake recorded profit of $277 million, or 46 cents, a share for the quarter. Excluding a $704 million charge in the year-ago quarter, Chesapeake would have been made $561 million, or $1.09 per share.

Analysts surveyed by Thomson Reuters expected Chesapeake to report profit of 49 cents a share. Those estimates typically exclude charges.

Revenue rose 25 percent to $2 billion in the quarter from $1.6 billion a year ago.

Chesapeake recorded a charge of $6 billion for writing down the value of its natural gas and oil properties. The charge reflects a 36 percent decline in natural gas prices to $3.63 per 1,000 cubic feet on March 31 from $5.71 per 1,000 cubic feet on Dec. 31.