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Chesapeake Energy reports first quarter net loss of $143 million Friday, May 2, 2008 Arkansas News Bureau LITTLE ROCK - Chesapeake Energy Corp. on Thursday reported a first-quarter net loss of $143 million related to hedges and announced plans to sell its Arkoma Basin Woodford Shale properties. Earnings were down drastically from a net profit of $232 million in the same quarter last year because of an unrealized non-cash after-tax mark-to-market loss of $704 million from future period natural gas and oil and interest rate hedges primarily as a result of higher natural gas and oil prices, the company said. Excluding that item, Chesapeake's adjusted net income to common shareholders was $561 million, which is 32 percent greater than the comparable period. The company reported a 31 percent increase in production compared to the first quarter of 2007. "This is strong evidence that our rapid production growth is translating into proportional gains in per-share net income despite inflationary pressure on the industry's cost structure," CEO Aubrey McClendon said. The company said it will sell its remaining Arkoma Basin Woodford Shale properties for more than $1.5 billion "to redeploy capital to higher priority areas in the company's operations," according to the company's statement. The company said it believes its undeveloped leasehold in four of its shale plays - the Fort Worth Barnett, Fayetteville, Haynesville and Marcellus - is worth approximately $25 billion. Shares of Chesapeake Energy (NYSE: CHK) closed Thursday at $50.93, down 77 cents. |
