HOUSTON, May 4 (Reuters) - Chesapeake Energy Corp on Tuesday reported a first-quarter compared with a year-earlier loss on hedging gains and higher prices, and said it is shifting capital to drill for oil or natural gas that is rich in liquids.
Chesapeake is aiming to boost its oil production to take advantage of climbing crude prices as slumping natural gas prices persist because of heavy supplies.
Citing low natural gas prices, the Oklahoma City-based company said it is cutting planned expenditures on natural gas exploration by about $300 million, or 12 percent in 2010.
The funds will be redirected to the exploration for oil or natural gas that is rich in liquids in areas like the Eagle Ford Shale in south Texas, the company said. Natural gas rich in liquids contains liquid hydrocarbons that are not crude oil and can be sold separately for a premium.
First-quarter net profit was $590 million, or 92 cents per share, compared with a loss of $5.7 billion, or $9.63 cents a share, in the same quarter a year earlier. In 2009, low natural gas prices caused the company to take a $6 billion charge to write down the value of assets.
Excluding items, Chesapeake earned 82 cents a share. On that basis, analysts had expected a profit of 70 cents per share, according to the average on Thomson Reuters I/B/E/S.
Also in its latest outlook, the Chesapeake forecast the number of its outstanding shares may rise more than a prior forecast.
Chesapeake said it now expects the number of its shares outstanding to be 645 million to 650 million in 2010, up from a prior forecast for 640 million to 645 million.
Chesapeake's shares were nearly flat in after-hours trading after closing on the New York Stock Exchange $23.62.
(Reporting by Anna Driver in Houston; Editing by Phil Berlowitz and Steve Orlofsky) 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.
Chesapeake is aiming to boost its oil production to take advantage of climbing crude prices as slumping natural gas prices persist because of heavy supplies.
Citing low natural gas prices, the Oklahoma City-based company said it is cutting planned expenditures on natural gas exploration by about $300 million, or 12 percent in 2010.
The funds will be redirected to the exploration for oil or natural gas that is rich in liquids in areas like the Eagle Ford Shale in south Texas, the company said. Natural gas rich in liquids contains liquid hydrocarbons that are not crude oil and can be sold separately for a premium.
First-quarter net profit was $590 million, or 92 cents per share, compared with a loss of $5.7 billion, or $9.63 cents a share, in the same quarter a year earlier. In 2009, low natural gas prices caused the company to take a $6 billion charge to write down the value of assets.
Excluding items, Chesapeake earned 82 cents a share. On that basis, analysts had expected a profit of 70 cents per share, according to the average on Thomson Reuters I/B/E/S.
Also in its latest outlook, the Chesapeake forecast the number of its outstanding shares may rise more than a prior forecast.
Chesapeake said it now expects the number of its shares outstanding to be 645 million to 650 million in 2010, up from a prior forecast for 640 million to 645 million.
Chesapeake's shares were nearly flat in after-hours trading after closing on the New York Stock Exchange $23.62.
(Reporting by Anna Driver in Houston; Editing by Phil Berlowitz and Steve Orlofsky) 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.