Chesapeake Energy Corp’s (CHK.N) quarterly profit exceeded analysts’ estimates on Wednesday, as it produced more oil and natural gas at higher prices while continuing to lower costs, pulling shares in the company around 3 percent higher.
Chesapeake’s production rose nearly 5 percent to 554,000 barrels of oil equivalent per day (boepd), while its number of gross wells supplying to the market dropped 25 percent.
The Oklahoma-based company’s average realized oil price rose 10 percent to $56.89 per barrel in the quarter, while its natural gas price rose nearly 16 percent.Read the whole article by clicking here.
That was in line with the trend among U.S. producers this quarter, who have all benefited from a roughly one-third rise in prices of U.S. light crude CLc1 compared to a year ago.
But the company also said a 4 percent fall in how much it pays to gather, process and transport its oil and natural gas had led to a reduction in overall costs per barrel on a combined basis.
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