UPDATE: Chesapeake Energy Posts Rise In Q1 Earnings

Chesapeake Energy

reported a rise in its first-quarter profit. Chesapeake lifted 2014 adjusted production growth forecast to 9% to 12%, versus its earlier outlook of 2% to 4% growth. Chesapeake's quarterly profit surged to $425 million, versus a year-ago profit of $102 million. On a per-share basis, it earned $0.54 per share, up from $0.02 per share. Excluding certain items, its adjusted earnings came in at $0.59 per share. Its revenue climbed 47% to $5.05 billion. However, analysts were projecting a profit of $0.48 per share on revenue of $4.45 billion. The company's press release offered the following comment from Doug Lawler, Chesapeake's Chief Executive Officer: "This was an important and defining quarter for Chesapeake, as our competitive capital allocation, cost leadership and capital efficiency initiatives are driving tangible improvements in the company's growth profile and financial performance. We are raising our 2014 total production growth outlook on an adjusted basis to 9 – 12% to reflect higher-than-expected natural gas liquids volumes. Additionally, we are raising the midpoint of our 2014 operating cash flow outlook by $700 million, or 13%, due primarily to our increased production outlook, better-than-expected first quarter cash flow and an increase in our benchmark commodity price assumptions for the full year." Chesapeake's average daily production increased 11% to 675,200 barrels of oil equivalent. Chesapeake shares gained 2.51% to $29.02 in pre-market trading.