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Chesapeake Energy’s Q2 2018 Results: Must-Knows

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Chesapeake’s Q2 2018 revenue

Chesapeake Energy (CHK) reported its second-quarter earnings on today. The company reported revenue of ~$2.25 billion, narrowly missing analysts’ estimates, as you can see below.

In comparison, Chesapeake Energy’s revenue in the second quarter of 2017 was ~$2.28 billion.

CHK’s revenues were lower on a year-over-year basis due to lower oil, natural gas, and NGL (natural gas liquids) sales—which stood at $982 million versus ~$1.28 billion in the second quarter of 2017. Production volumes were mostly flat compared to Q2 2017. CHK’s production volumes were 530 Mboe/d (thousand barrels of oil equivalent per day), compared to 528 Mboe/d reported in Q2 2017. Natural gas price realizations were $2.64 per Mcf (thousand cubic feet), versus $2.71 per Mcf in Q2 2017. Lower natural gas price realizations in Q2 2018 explain the lower revenues.

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Chesapeake’s Q2 2018 earnings

Chesapeake Energy’s adjusted EPS were $0.15, in line with Wall Street analysts’ consensus EPS estimate. The Energy’s adjusted EPS in the second quarter of 2017 were $0.18.

CHK’s EPS were lower on a year-over-year basis due to lower revenues. Higher operating expenses also caused CHK’s earnings to decline. Its operating expenses were $2.22 billion, versus $1.88 billion in Q2 2017.

CHK’s peer EQT Corporation (EQT) reported adjusted EPS of $0.44 in Q2 2018, compared to $0.07 in Q2 2017. Cabot Oil & Gas (COG) reported adjusted EPS  of $0.13, versus $0.14 in Q2 2017.

Noble Energy (NBL) and Antero Resources (AR) have yet to release their second-quarter earnings. These companies are expected to report their second-quarter EPS of $0.22 and $0.18, respectively. Their EPS in Q2 2017 were $0.05 and -$0.04, respectively.

Stay tuned to Market Realist for more updates on Chesapeake Energy and other upstream stocks this earnings season at our Energy and Power page.

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