- Chesapeake Energy’s second-quarter adjusted Earnings Per Share (EPS) was 1.0 cents, a significant drop from 64 cents year-over-year.
- This was better than the estimated loss per share of 1.6 cents.
- Total revenue for the quarter was $505 million, a 73% decrease from the previous year, and below the estimate of $778.6 million.
- Adjusted Earnings Before Interest, Taxes, Depreciation, Amortization, and Exploration Expenses (Ebitdax) stood at $358 million, down 32% year-over-year, but slightly above the estimated $357 million.
- Average production was 2.75 Billion Cubic Feet Equivalent (BCFE) per day.
- Chesapeake Energy has revised its capital expenditure forecast for 2024 to be between $1.2 billion and $1.3 billion, down from the previous range of $1.25 billion to $1.35 billion, and significantly lower than the estimate of $1.55 billion.
- The company also lowered its production expense guidance by 4% and 8%, citing improved operational efficiency and deflation.
- Capital guidance for the full year 2024 has been reduced by $50 million, now set at $1.2 billion to $1.3 billion.
- Production expense guidance has been adjusted to $0.21 to $0.26 per million cubic feet (mcf), down from the previous $0.02.
- Analyst ratings for Chesapeake Energy include 13 buys and 8 holds, with no sell ratings.
A look at Chesapeake Energy Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Chesapeake Energy, a company focused on oil and natural gas production in the United States, is showing a promising long-term outlook based on its Smartkarma Smart Scores. With strong scores of 4 in Value, Dividend, and Growth, the company is perceived positively in these areas. This indicates that Chesapeake Energy is viewed favorably in terms of its financial health, potential for growth, and ability to provide returns to investors.
However, the company scored slightly lower in Resilience and Momentum, with scores of 3. This suggests that there may be some challenges in terms of its ability to withstand external economic pressures and maintain a consistent growth trajectory. Despite this, overall, Chesapeake Energy appears to be positioned well for the long term based on its solid scores in key areas of value, dividend, and growth.
Summary of company description: Chesapeake Energy Corporation produces oil and natural gas, focusing on discovering, developing, and acquiring conventional and unconventional natural gas reserves onshore in the United States.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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