Chesapeake Energy reported earnings of 11 cents a share for the fourth quarter, below the Capital IQ Consensus Estimate of 24 cents a share for the quarter. Revenue grew 11.2% year over year to $5.05 billion for the quarter, above analysts' estimates of $4.48 billion.
The oil company said it is budgeting total capital expenditures of $4 billion to $4.5 billion for 2015. The company spent $6.7 billion in 2014.
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Chesapeake Energy also said that it will operate 35 to 35 rigs in 2015, its lowest operated rig activity level since 2004, and down from its average of 64 rigs in 2014.
CEO Dug Lawler said, "We have taken and continue to take appropriate steps not only to weather the current difficult commodity price environment we face today, but to thrive in it. Chesapeake became a much stronger company in 2014, and we are looking forward to becoming even stronger in 2015."
TheStreet Ratings team rates CHESAPEAKE ENERGY CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHESAPEAKE ENERGY CORP (CHK) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins."
You can view the full analysis from the report here: CHK Ratings Report