Chesapeake Energy reported the highest quarterly profit in its history today, though analyst Mark Hanson wasn’t too impressed. ”It was a positive quarter but the bar was set pretty low,” he told Bloomberg News. “I’d give it a B-plus. The market’s going to give them some credit for this, though they’ve still got a long way to go.”
Second-quarter net income rose 91 percent to $972 million, or $1.29 cents a share, from $510 million, or 68 cents, a year earlier, the Oklahoma City-based company said in a statement yesterday. Excluding gains from the sale of a pipeline and storage subsidiary and other one-time items, Chesapeake earned 6 cents a share, 2 cents less than the average (CHK) of 31 analysts’ estimates compiled by Bloomberg.
Chesapeake increased the minimum it plans to raise through asset sales this year to $13 billion from $11.5 billion, and said more than half of that will come by the end of next month when it completes sales of Texas oifields. The company lifted its full-year production estimate thanks to discoveries in Texas and Ohio, and said the danger of outspending cash flow next year has abated. Oil output from Chesapeake’s wells soared 88 percent from a year earlier.