USA: Chesapeake Reports Q3 Results

November 4, 2011

Chesapeake Energy Corporation announced its 2011 third quarter financial and operational results.

For the quarter, Chesapeake reported net income to common stockholders of $879 million ($1.23 per fully diluted common share), operating cash flow of $1.409 billion (defined as cash flow from operating activities before changes in assets and liabilities) and ebitda of $2.013 billion (defined as net income before income taxes, interest expense, and depreciation, depletion and amortization) on revenue of $3.977 billion and production of 306 billion cubic feet of natural gas equivalent (bcfe).

The company’s 2011 third quarter results include various items that are typically not included in published estimates of the company’s financial results by certain securities analysts. For the 2011 third quarter, Chesapeake reported adjusted net income to common stockholders of $496 million ($0.72 per fully diluted common share) and adjusted ebitda of $1.385 billion. The primary excluded item was a net unrealized after-tax mark-to-market gain of $385 million resulting from the company’s natural gas, liquids and interest rate hedging programs.

Key Operational and Financial Statistics Summarized

The table below summarizes Chesapeake’s key results during the 2011 third quarter and compares them to results during the 2011 second quarter and the 2010 third quarter.