Chesapeake Energy Corp. (NYSE:CHK) earnings were almost the same as last quarter, even though revenue in the quarter jumped 20 percent.
Earnings for the quarter came in at $235 million, or 37 cents a share, slightly down from the $237 million, or 39 cents a share last year in the same quarter.
Revenue on the other hand rose to $2.01 billion, increasing by 20 percent from $1.67 billion last year.
After excluding one-time items, the company generated profits of 75 cents a share, up from the 69 cents a share analysts had estimated.
The company was punished from a $214 million loss from it hedging strategy in gas, oil and interest rates. Redeemed debt with a charge of $42 million was the other major factor.
In the end, this is about the abundance of natural gas, which it'll take Chesapeake some time to decrease its exposure to.
At this time it accounts for the majority of production of Chesapeake, with oil and natural gas liquids making up 10 percent of the overall production of the company. Chesapeake said they're going to continually work on increasing liquids going forward.
According to CEO Aubrey McClendon, Chesapeake will have liquid production coming in at about 25 percent of overall production, and 40 percent of revenue from production.
To limit the consequences of low natural gas prices, the company will also cut back on drilling of their natural gas wells until prices rebound to at least $6 per 1,000 cubic feet.
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