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Chesapeake Energy’s 1Q18 Earnings Beat Estimates

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Chesapeake’s 1Q18 revenue

Chesapeake Energy (CHK) reported its 1Q18 earnings today. The company reported revenue of ~$2.49 billion—in line with analysts’ estimates, as you can see below.

In comparison, Chesapeake Energy’s revenue in 1Q17 was ~$2.75 billion. Its 4Q17, the company reported revenue of ~$2.52 billion.

CHK’s revenues were lower on a year-over-year basis due to lower oil, natural gas, and NGL (natural gas liquids) sales of $1.24 billion in 1Q18 versus $1.47 billion in 1Q17 and $1.26 billion in 4Q17.

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Chesapeake’s 1Q18 earnings

Chesapeake Energy’s adjusted EPS (earnings per share) in 1Q18 were $0.34—higher than Wall Street analysts’ consensus EPS estimate of $0.27. Chesapeake Energy’s adjusted EPS in 1Q17 were $0.23, and in 4Q17, they were $0.30.

As you can see, CHK’s EPS were higher both year-over-year and on a quarterly basis despite lower revenues. The increase was supported by lower operating expenses of $2.21 billion in 1Q18 and $2.51 billion in 1Q17. Operating expenses in 4Q17 were $2.11 billion.

1Q18 highlights

Chesapeake Energy management noted that the company reduced $581 million of its long-term debt in 1Q18. As of March 31, CHK’s principal debt balance was~ $9.4 billion, versus $9.981 billion as of December 31. The company had approximately $3.4 billion of available liquidity under its revolving credit facility as of March 31.

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