OKLAHOMA CITY – Big gains from the sale of its assets led Chesapeake Energy
Corp. to report second-quarter net income of $972 million, or $1.29 cents a
share, the company announced after the close of trading Monday. When gains from
asset sales and other one-time items are excluded, Chesapeake reported adjusted
net income of $3 million, or 6 cents per share.
The asset sales enabled Chesapeake to overcome greatly reduced prices natural gas -- down about 40% in the last 12 months. The company said it would lower natural gas production capacity in 2012 by 12% while increasing its liquids production by 32%.
In the first half of 2012, Chesapeake completed $4.7 billion of asset sales, and plans to announce another $7 billion in asset sales in the third quarter. Among the asset sales, Chesapeake realized a $584 million gain from selling its Chesapeake Midstream Partners, now including Access Midstream Partners LP, which is developing with its venture partners, a $900 million gas processing complex in Columbiana and Harrison counties.
Date: Tuesday, August 7, 2012
Chesapeake Energy Corp. could see its cash-flow gap widen to $18.6 billion by
the end of 2013 if it doesn't sell off assets.
Chesapeake Energy Corp.'s cash-flow gap could grow to $18.6 billion by the end of next year if the Oklahoma City-based energy company doesn't sell off some assets, including hundreds of thousands of acres it has put up for sale in Ohio,
Chesapeake (NYSE:CHK), which generates 90 percent of its production from gas and gas byproducts, has been slammed by low oil and natural gas prices this year, Bloomberg reports. The company is trying to raise up to $20.5 billion in capital by selling assets.
Earlier this year, the company put drilling rights for about 338,000 acres in Ohio on the auction block. The company's stock price has been in free fall this year after possible conflicts of interest surfaced related to CEO Aubrey McClendon's dealings and his stake in company wells.
The asset sales enabled Chesapeake to overcome greatly reduced prices natural gas -- down about 40% in the last 12 months. The company said it would lower natural gas production capacity in 2012 by 12% while increasing its liquids production by 32%.
In the first half of 2012, Chesapeake completed $4.7 billion of asset sales, and plans to announce another $7 billion in asset sales in the third quarter. Among the asset sales, Chesapeake realized a $584 million gain from selling its Chesapeake Midstream Partners, now including Access Midstream Partners LP, which is developing with its venture partners, a $900 million gas processing complex in Columbiana and Harrison counties.
Date: Tuesday, August 7, 2012
Chesapeake Energy Corp.'s cash-flow gap could grow to $18.6 billion by the end of next year if the Oklahoma City-based energy company doesn't sell off some assets, including hundreds of thousands of acres it has put up for sale in Ohio,
Chesapeake (NYSE:CHK), which generates 90 percent of its production from gas and gas byproducts, has been slammed by low oil and natural gas prices this year, Bloomberg reports. The company is trying to raise up to $20.5 billion in capital by selling assets.
Earlier this year, the company put drilling rights for about 338,000 acres in Ohio on the auction block. The company's stock price has been in free fall this year after possible conflicts of interest surfaced related to CEO Aubrey McClendon's dealings and his stake in company wells.
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