EOG), Range Resources ( RRC) as well as Console Energy ( CNX). However, Chesapeake has shown an ability to make the best out of a bad situation, as it demonstrated in its most recent earnings report.
The Quarter That WasFor the quarter, Chesapeake reported a net loss of $71 million, or 11 cents a share. The loss was a disappointment because it came after an increase of 50% in revenue for the first quarter, $2.5 billion, but short of analysts' estimates of $2.75 billion. Adjusted earnings were 18 cents a share, missing Street estimates of 29 cents. On the bright side, it was able to increase daily production to 3.658 billion cubic feet equivalent, or by 18%. Overall, things could have been a lot worse, and this is something investors need to understand. When the company announced plans back in January to help improve the fundamentals of the natural gas market, it said then it would reduce the number of rigs it had operating -- representing a cut of 50% by the second quarter.
At the time, it seemed a bit aggressive. However, looking at the results it appears not only did the company have the right idea, but it might have been a bit underestimated. So while the company's management has been under a considerable amount of scrutiny for some poor decisions, in this case it deserves some credit for having anticipated the problem in order to lessen its impact. But it has not stopped there. The company has been doing a more than an adequate job to help mitigate the situation, an example being investing in oil fields in an attempt to increase crude production, as well as diversifying its offerings.