Chesapeake Energy Posts 1Q $6B Loss

Along with oil prices and other commodities, gas prices have fallen 73 percent since peaking last June as the country fell into a recession and demand plummeted, especially as auto companies and steelmakers cut production, as new sources of gas came online.

Chesapeake and other energy companies have been slashing drilling and production. Chesapeake said Monday that it would reduce its 2009 and 2010 drilling budget by another $500 million.

Thursday, Houston-based Apache Corp. posted a first-quarter loss due to a $1.98 billion write-down on oil and gas properties because of falling gas prices.

Chesapeake said last month that it will cut production by 13 percent, double what it previously announced in March. Still, Chesapeake said Monday that daily production was up 5 percent in the quarter over a year ago and 2 percent above fourth quarter production. Chesapeake said last week that

Chesapeake, which sold stakes in some of its projects in the past year to generate proceeds of $10.3 billion, said it plans further sales this year to raise $1.5 billion to $2 billion.

The report was released after the stock market closed Monday. Shares rose $1.93, or 9 percent, to $22.82 during the regular session, but fell $1, or 4.4 percent, in afterhours trading.