Chesapeake Energy reverses Q3 loss
Chesapeake Energy said November 1 it had net income in Q3 2022 of $883mn compared to a net loss of $345mn in the same period a year ago, while adjusted EBITDAX increased to $1.3bn from $519mn in Q3 2021.
During the third quarter, Chesapeake reported an unrealised gain of $199mn on oil and gas derivatives, compared to an unrealised derivatives loss of $618mn a year ago.
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Natural gas production averaged 3.7bn ft3/day, with a continuing focus on core operating areas in the Marcellus and Haynesville basins, CEO Nick Dell’Osso said.
“We remain focused on capturing the tremendous value from the premium rock, returns and runway of our Marcellus and Haynesville positions,” he said. “Simultaneously, we are progressing efforts to exit our Eagle Ford position and have seen strong interest in these high-value assets.”
Like many of its peers, Chesapeake is focused on shareholder returns, and in the third quarter had adjusted free cash flow of $773mn, of which $350mn is earmarked for common variable dividends. A common variable dividend of $2.61/share has been announced, payable on December 1 to shareholders of record on November 15, bringing to $3.16/share total dividends the company will pay.
Additionally, Chesapeake had repurchased about 7.6mn shares through the first nine months this year, at an aggregate price of about $670mn, and in October bought back another 4mn shares from former creditors for about $400mn.