Chesapeake Energy Results Not as Bad as Feared

Chesapeake Energy Corp. said its third-quarter loss narrowed thanks to lower costs that helped offset a drop in revenue on reduced production and low commodities prices.

Shares rose 6.4% to $5.62 in recent premarket trading as the results weren't as bad as analysts had feared.

Over all, Chesapeake reported a loss of $1.16 billion, or $1.54 a share, compared with a year-earlier loss of $4.7 billion, or $7.08 a share, a year earlier. Excluding Barnett shale exit costs, asset write-downs and other items, adjusted per-share earnings were 9 cents, compared with a year-earlier loss of 6 cents. Revenue dropped by a third to $2.28 billion.

Analysts polled by Thomson Reuters expected a per-share loss of 3 cents and revenue of $2.16 billion.

Chesapeake in August agreed to pay nearly $340 million to exit the Barnett Shale in Texas, part of the energy producer's efforts to improve its finances. The move helps rid Chesapeake of nearly $1.9 billion in financial commitments it had to Williams Partners LP, a pipeline company that moved to market the natural gas Chesapeake pumped in the Barnett. Chesapeake also will transfer its interests in the Barnett field to Saddle Barnett Resources LLC, a private equity-backed company based in Dallas.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

November 03, 2016 08:35 ET (12:35 GMT)

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