Chesapeake Energy's Earnings Slump Under the Weight of Weak Oil and Gas Prices
The continued volatility in the oil and gas markets is hurting Chesapeake Energy (NYSE: CHK). That was abundantly clear during the third quarter, as the energy company posted a deeper-than-expected loss. Because industry conditions are worsening, the company now plans to slash spending in 2020. That's an abrupt shift for a company that put out a growth-focused plan just last quarter.
Chesapeake Energy reported an adjusted loss in the third quarter of $188 million, or $0.11 per share, which came in $0.02 per share below the analysts' consensus estimate. Driving that weaker-than-expected result was a combination of lower production and natural gas prices. Overall, the company's output fell 11% year over year to 478,000 barrels of oil equivalent per day (BOE/D), though it did rise 3% after adjusting for asset sales and purchases. Meanwhile, its oil production averaged 115,000 barrels per day during the quarter, which, as expected, was down from the record 122,000 BPD it produced during the second quarter due to its timing in completing new oil wells.
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Source Fool.com
