This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Chesapeake Energy Corporation Reports Financial And Operational Results For The 2013 Full Year And Fourth Quarter

Chesapeake Energy Corporation (NYSE: CHK) today reported financial and operational results for the 2013 full year and fourth quarter. Key information related to the 2013 full year is as follows:
  • Adjusted net income per fully diluted share increases to $1.50 in the 2013 full year from $0.61 in the 2012 full year
  • Adjusted ebitda increases 34% year over year to $5.016 billion
  • Average daily production rises 3% year over year to 669,600 boe per day
  • Average daily production, adjusted for asset sales, increases 11% year over year
  • Combined 2013 per unit production and G&A expenses decline 15% year over year
  • 2013 year-end proved reserves increase to 2.7 bboe
  • 2013 asset sales total $4.4 billion; 2014 asset sales already completed or anticipated total approximately $1 billion, excluding possible oilfield services division and other strategic asset dispositions

Doug Lawler, Chesapeake’s Chief Executive Officer, said, "2013 was a foundational year in which we focused on optimizing our business processes, implementing a disciplined capital budget, decreasing per unit cash costs, selling noncore assets and reducing liabilities. We believe that the impact of these efforts on our capital efficiency and returns will become even more evident in 2014 as we continue to drive well performance up and well costs and per unit cash costs down. In 2014 we plan to reduce drilling and completion costs, before drilling carry credits, by nearly $900 million, while still generating comparable production growth year over year."

For the 2013 full year Chesapeake reported net income available to common stockholders of $474 million, or $0.73 per fully diluted share. These results include the after-tax impact of the following items typically excluded by securities analysts in their earnings estimates:
  • a charge of $341 million for the impairment of certain of the company’s property and equipment and other assets;
  • a $154 million charge for restructuring and other termination costs;
  • charges of $120 million for the purchase of debt and the extinguishment of a lease obligation in the Fort Worth, Texas area;
  • net losses of $95 million on certain investments, primarily related to our proportionate share of an estimated impairment recorded by FTS International, Inc. on its non-depreciable assets;
  • a net gain of $187 million on sales of certain of the company’s fixed assets; and
  • noncash unrealized gains of $100 million from the company’s derivative instruments.

In total, these items reduced net income available to common stockholders for the 2013 full year by approximately $422 million on an after-tax basis. Adjusting for these items, 2013 full-year net income available to common stockholders was $896 million, or $1.50 per fully diluted share, which compares to adjusted net income available to common stockholders of $285 million, or $0.61 per fully diluted share, in the 2012 full year. This increase is primarily the result of substantially higher year-over-year oil production, higher realized oil, natural gas and natural gas liquids (NGL) prices, and lower per unit production and general and administrative (G&A) expenses.

1 of 13

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs