Chesapeake said it has sold or agreed to sell $700 million in assets since the end of 2015 and plans to sell another $500 million to $1 billion in assets this year.
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In light of the challenging commodity price environment, our focus for 2016 is to improve our liquidity, further reduce our cost structure and address our near-term debt maturities to strengthen our balance sheet. The Company also own oil and natural gas marketing and natural gas gathering and compression businesses.
Chesapeake’s daily production for the 2015 third quarter averaged about 667,000 barrels of oil equivalent (boe), a year-over-year increase of 3% adjusted for asset sales.
That was on top of $500m in net proceeds from the repurchase of three Volumetric Production Payments.
The company reported a net loss $2.23 billion, or $3.36 per share, attributable to shareholders for the fourth quarter ended December 31. Adjusted for one-time expenses, the company lost $329 million, or 20 cents a share, compared to an adjusted net income of $957 million, or $1.49 a share, in 2014.
Chesapeake Energy Corporation is a producer of natural gas oil and natural gas liquids (NGL) in the United States. Deutsche Bank decreased their price objective on shares of Chesapeake Energy from $10.00 to $8.00 in a report on Tuesday, November 3rd. ( CHK ) said it is budgeting total capital expenditures for fiscal 2016 of $1.3 billion to $1.8 billion. In the third quarter the company took a similar impairment charge of $4.7 billion. Full year revenues came in at $12.76 billion.
Chesapeake’s 3.25 percent notes maturing next month have risen to 95.45 cents on the dollar after posting a record one- day plunge to 84 cents on February 8. That indicates that the company may be able to buy up some outstanding debt at a significant discount. The company reported $-0.16 EPS for the quarter, beating the analyst consensus estimate by $0.02.
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Chesapeake had a awful year and there’s not much else to say about that. The company’s plans offer a hint of promise in another year or two for those willing to tough it out. Post opening the session at $2.53, the shares hit an intraday low of $2.16 and an intraday high of $2.71 and the price vacillated in this range throughout the day. Wunderlich maintained it with “Buy” rating and $7.0 target price in a January 5 report.
