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How Did Chesapeake Energy Perform in 4Q17?

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Sep. 28 2019, Updated 6:00 a.m. ET

Chesapeake’s 4Q17 and fiscal 2017 revenue

On February 22, 2018, Chesapeake Energy (CHK) reported its 4Q17 earnings. The company reported revenue of ~$2.5 billion, higher than analysts’ estimates of ~$2.28 billion. Chesapeake Energy’s revenue in 4Q16 was ~$2.02 billion. For fiscal 2017, the company reported revenue of ~$9.5 billion versus ~$7.9 billion in 2016.

CHK’s revenues were higher on a year-over-year basis due to an increase in its production volumes and higher commodity prices. Oil, natural gas, and NGL (natural gas liquids) revenue in 4Q17 was ~$1.3 million compared to ~$678 million in 4Q16. In fiscal 2017, oil, natural gas, and NGL revenues were $5.0 billion compared to ~$3.3 billion in 4Q16.

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Chesapeake’s 4Q17 and fiscal 2017 earnings

Chesapeake Energy’s adjusted EPS (earnings per share) in 4Q17 were $0.30, higher than Wall Street analysts’ consensus EPS estimate of $0.24. Chesapeake Energy’s adjusted EPS in 4Q16 was $0.07. In fiscal 2017, Chesapeake Energy reported earnings per share of $0.82 compared to -$0.03 in fiscal 2016.

As we can see, CHK’s EPS was higher on a year-over-year basis both on a quarterly and annual basis. Apart from higher revenues, the increase was also supported by lower operating expenses.

Operating expenses in 4Q17 were $2.1 billion versus $2.3 in 4Q16. In fiscal 2017, CHK reported operating expenses of ~$8.4 billion versus operating expenses of $12.3 billion in fiscal 2016.

Peer comparison

In comparison, Chesapeake Energy’s upstream peers Noble Energy (NBL) and EQT (EQT) reported 4Q17 EPS of $0.76 and $0.87, respectively, compared to $0.25 and $0.26 in 4Q16. To know more about how these companies performed in 4Q17, read Noble Energy Stock Jumped ~11% after Its 4Q17 Earnings and EQT Beat Earnings and Revenue Estimates in 4Q17.

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