Chesapeake Profit Climbs, USA

Chesapeake Energy reported financial and operational results for the 2013 full year and fourth quarter.

Key information related to the 2013 full year is as follows:

– Adjusted net income per fully diluted share increases to $1.50 in the 2013 full year from $0.61 in the 2012 full year

– Adjusted ebitda increases 34% year over year to $5.016 billion

– Average daily production rises 3% year over year to 669,600 boe per day

– Average daily production, adjusted for asset sales, increases 11% year over year

– Combined 2013 per unit production and G&A expenses decline 15% year over year

– 2013 year-end proved reserves increase to 2.7 bboe

Doug Lawler, Chesapeake’s Chief Executive Officer, said, “2013 was a foundational year in which we focused on optimizing our business processes, implementing a disciplined capital budget, decreasing per unit cash costs, selling noncore assets and reducing liabilities. We believe that the impact of these efforts on our capital efficiency and returns will become even more evident in 2014 as we continue to drive well performance up and well costs and per unit cash costs down. In 2014 we plan to reduce drilling and completion costs, before drilling carry credits, by nearly $900 million, while still generating comparable production growth year over year.”

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Press Release, February 26, 2014; Image: Chesapeake Energy