Chesapeake Energy Reports Strong Revenue On Natural Gas Hedges

Chesapeake Energy Corp. (NYSE CHK) announced on Thursday that its adjusted third-quarter earnings climbed 47 percent.

CHK, which is the largest natural gas producer in the U.S., reported $486 million, or 85 cents a share, for the quarter ended Sept. 30, compared with $346.3 million, or 72 cents per share, a year ago.

Year to date, Chesapeake said it has made $1.5 billion, or $2.73 per share, compared with $1.1 billion, or $2.10 per share, a year ago. Revenue rose to $8.6 billion for the year from $5.7 billion.

Revenue nearly quadrupled to $7.5 billion in the quarter because of the hedges from $2 billion a year ago.

Chesapeake Energy Acquires Barnett Shale Assets

Chesapeake Energy Corp has purchased Barnett Shale assets from Exxon Mobil. The deal includes 24,000 acres of property and an 80-mile pipeline owned by an Exxon Mobil partnership in the Barnett Shale.


The Barnett Shale is one of the largest natural gas producing areas in the United States.

Terms of the deal were not disclosed.

China National Petroleum Eyes U.S. Natural Gas

HONG KONG, July 28 (Reuters) - China National Petroleum Corp (CNPC), China's top state oil firm, is thinking of bidding for minority stakes in shale gas assets of Chesapeake Energy Corp, according to a local newspaper report.

Chesapeake is looking to raise as much as $5 billion this year from selling minority stakes in its Arkansas and Pennsylvania shale gas properties, the South China Morning Post reported on Monday, citing unnamed market sources.
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Chesapeake Energy Hits Record High

Shares of Chesapeake Energy (NYSE CHK) hit a record high on Wednesday after the company announced a joint venture with Plains Exploration & Production Co. to develop a natural gas deposit in the Haynesville shale.


Plains Exploration has agreed to buy a 20 percent interest in Chesapeake's leasehold for $1.65 billion in cash.

Plains Exploration and Production also agreed to finance half of Chesapeake's 80 percent share of drilling and completion costs for future wells. These payments would be made over several years and would cap out at an additional $1.65 billion.

Shares of CHK hit a record high of $74 before retreating to close at $69.40.