Chesapeake Energy Q1 Profit Tops Estimates

Chesapeake Energy Corporation (NYSE: CHK) posted better-than-expected earnings for the first quarter, but the company's sales missed analysts' estimates.The Oklahoma City, Oklahoma-based company reported a quarterly loss of $3.78 billion, or $5.72 per share, versus a year-ago profit of $374 million, or $0.54 per share. Excluding items, the company's earnings declined to $0.11 per share from $0.59 per share.Its revenue dropped 45.3 percent to $2.76 billion. However, analysts were projecting earnings of $0.04 per share on revenue of $3.68 billion.The average estimate among 19 Estimize users was for earnings of $0.28 per share and revenue of $2.78 billion.Its average daily production climbed 14 percent to 686,000 barrels of oil equivalent per day, adjusted for asset sales, in the quarter. On average, the company operated 54 rigs in the first quarter, versus 60 in the year-ago period.The company's capital expenditures increased 8.6 percent year-over-year to $1.49 billion.Adjusted Ebitda declined to $928 million in the first quarter, versus $1.515 billion in the year-ago quarter.Doug Lawler, Chesapeake's Chief Executive Officer, said, "Chesapeake is meeting the challenge of low commodity prices head-on and delivered a very strong first quarter. Adjusted for asset sales, our production in the 2015 first quarter grew by 14% compared to the 2014 first quarter. Our cash costs remain at industry-low levels and we expect our assets to continue delivering greater efficiencies even as we reduce our activity levels throughout 2015."The company now projects production of 640,000 to 650,000 barrels oil equivalent per day, versus earlier forecast of 635,000 to 645,000 boepdChesapeake Energy shares rose 2.71 percent to $16.29 in pre-market trading.