Chesapeake Energy beats quarterly profit estimates on lower expenses (updated)

Southwestern Energy Co

20/02/2024 21:53

(Adds shares, background in paragraphs 3 to 7)
       Feb 20 (Reuters) - 
    Chesapeake Energy  CHK.O  beat Wall Street estimates for
fourth-quarter profit on Tuesday as the natural gas producer saw
a steep decline in its operating expenses. 
  
        However, shares were down about 3% in aftermarket
trading as the firm reported a fall in its fourth-quarter
production.
  
    The company, which is based out of Oklahoma, said
fourth-quarter production fell to 3.43 billion cubic feet
equivalent (bcfe) per day, from 4.05 bcfe per day the previous
year.
    Average natural gas prices  NGc1  dipped over 50% in the
fourth quarter compared with last year, after demand was
pressured by milder-than-expected weather. 
    Prices also eased from sky-high levels in 2022, when
Russia's invasion of Ukraine boosted demand for U.S. liquefied
natural gas (LNG).
    Adjusted profit was $1.31 per share for the three months
ended Dec. 31, compared with analysts' average estimate of 73
cents per share, according to LSEG data.
    Chesapeake said in January it had agreed to buy smaller
rival Southwestern Energy  SWN.N  in an all-stock deal valued at
$7.4 billion, making it the largest independent U.S. natural gas
producer. 

 (Reporting by Saikeerthi in Bengaluru; Editing by Pooja Desai)
 ((Saikeerthi@thomsonreuters.com;))