Chesapeake Raises 2014 Production Growth Outlook

Chesapeake Energy Corporation reported financial and operational results for the 2014 first quarter.

Key information related to the first quarter and the company’s full-year 2014 Outlook is as follows:

– 2014 first quarter adjusted net income per fully diluted share increases 97% to $0.59 from $0.30 in the 2013 first quarter;

– Adjusted ebitda increases 34% year over year to $1.5 billion;

– Average production of 675,200 boe per day increases 11% year over year, adjusted for 2013 asset sales;

– Total capital expenditures of $850 million decrease approximately 50% year over year;

– 2014 full-year adjusted production growth outlook increased to 9 – 12% from 8 – 10%;

– 2014 full-year operating cash flow outlook raised to $5.8 – $6.0 billion from $5.1 – $5.3 billion.

Doug Lawler, Chesapeake’s Chief Executive Officer, commented, “This was an important and defining quarter for Chesapeake, as our competitive capital allocation, cost leadership and capital efficiency initiatives are driving tangible improvements in the company’s growth profile and financial performance. We are raising our 2014 total production growth outlook on an adjusted basis to 9 – 12% to reflect higher-than-expected natural gas liquids volumes. Additionally, we are raising the midpoint of our 2014 operating cash flow outlook by $700 million, or 13%, due primarily to our increased production outlook, better-than-expected first quarter cash flow and an increase in our benchmark commodity price assumptions for the full year.”

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Press Release, May 7, 2014; Image: Chesapeake Energy