Chesapeake Energy posts profit after bankruptcy exit, declares dividend

Business

Chesapeake Energy Corp (CHK.O) on Tuesday reported a quarterly profit of $295 million in its first earnings after emerging from bankruptcy in February.

Once the second-largest U.S. natural gas producer, the company filed for court protection last June, saddled with more than $9 billion debt from overspending on assets and a sudden decline in oil prices and demand from the pandemic.

Chesapeake on Tuesday also declared an annual dividend on its common shares of $1.375 per share. The first quarterly dividend will be paid on June 10.

Shares of the company were up about 5% at $51.50 in extended trade.

The company expects 2021 production to be between 410,000 barrels of oil equivalent per day (boepd) and 420,00 boepd, with total capital expenditure ranging between $670 million and $740 million.

Chesapeake said it achieved an average net production rate of about 436,000 boepd during the first quarter.

Total production levels in 2022 is expected to remain flat to 2021, the company added, with natural gas increasing to about 85% of the total production mix for 2022.

Chesapeake is currently operating seven rigs across its portfolio, with three rigs in Appalachia, three rigs in Haynesville and one rig in South Texas.