By Anna Driver
HOUSTON, Feb 17 (Reuters) - Chesapeake Energy Corp reported a narrower fourth quarter loss as the natural gas company had fewer writedowns on the value of its assets and its production grew 13 percent.
Chesapeake has managed to keep its output growing by drilling wells that have high production rates in places such as the Barnett Shale in Texas and the Haynesville Shale in Louisiana.
Chesapeake, based in Oklahoma City, Oklahoma, said on Wednesday its net loss was $530 million, or 84 cents per share, compared with a loss of $1 billion, or $1.74 per share.
Natural gas prices fell about 30 percent from a year ago in the fourth quarter, prompting a number of energy companies to lower the assigned value of assets.
Excluding certain items, Chesapeake had a profit of 77 cents per share. On that basis, Wall Street analysts on average had expected a profit of 70 cents per share, according to Thomson Reuters I/B/E/S.
'If you look at the fact that they are generating low costs and growing production they did all right. It's a decent report,' said Phil Weiss, an energy analyst at Argus Research. 'In terms of the (Wall Street) outperformance, the lower costs have to be a factor.'
Chesapeake also reported better-than-expected production of 2.6 billion cubic feet equivalent per day on Wednesday, which helped the company beat analyst estimates, Weiss said.
Chesapeake shares slipped to $26.13 after the close of regular trading, slipping from the company's New York Stock Exchange Close of $26.36.
(Reporting by Anna Driver in Houston; editing by Tim Dobbyn and Andre Grenon) Keywords: CHESAPEAKE/ (anna.driver@thomsonreuters.com; +1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
HOUSTON, Feb 17 (Reuters) - Chesapeake Energy Corp reported a narrower fourth quarter loss as the natural gas company had fewer writedowns on the value of its assets and its production grew 13 percent.
Chesapeake has managed to keep its output growing by drilling wells that have high production rates in places such as the Barnett Shale in Texas and the Haynesville Shale in Louisiana.
Chesapeake, based in Oklahoma City, Oklahoma, said on Wednesday its net loss was $530 million, or 84 cents per share, compared with a loss of $1 billion, or $1.74 per share.
Natural gas prices fell about 30 percent from a year ago in the fourth quarter, prompting a number of energy companies to lower the assigned value of assets.
Excluding certain items, Chesapeake had a profit of 77 cents per share. On that basis, Wall Street analysts on average had expected a profit of 70 cents per share, according to Thomson Reuters I/B/E/S.
'If you look at the fact that they are generating low costs and growing production they did all right. It's a decent report,' said Phil Weiss, an energy analyst at Argus Research. 'In terms of the (Wall Street) outperformance, the lower costs have to be a factor.'
Chesapeake also reported better-than-expected production of 2.6 billion cubic feet equivalent per day on Wednesday, which helped the company beat analyst estimates, Weiss said.
Chesapeake shares slipped to $26.13 after the close of regular trading, slipping from the company's New York Stock Exchange Close of $26.36.
(Reporting by Anna Driver in Houston; editing by Tim Dobbyn and Andre Grenon) Keywords: CHESAPEAKE/ (anna.driver@thomsonreuters.com; +1 713 210 8509; Reuters Messaging: anna.driver.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
