Chesapeake Energy losses narrow to $71 million in first quarter

FROM STAFF REPORTS Modified: May 1, 2012 at 3:56 pm •  Published: May 1, 2012
Advertisement
;

Chesapeake Energy Corp. posted narrower losses in the first quarter compared to a year ago as the company weathered low natural gas prices and a voluntary curtailment of gas production.

Chesapeake posted a net loss of $71 million, or 11 cents per diluted share, in the first quarter. That compared with a loss of $205 million, or 32 cents per diluted share in the first quarter of 2011. Revenue for the quarter was $2.4 billion, up from $1.6 billion in the year-earlier quarter.

The company continued to shift its focus to oil and natural gas liquids, which made up 19 percent of total production in the first quarter. That compared with 13 percent in the first quarter a year ago.

Chairman and CEO Aubrey McClendon said the company remains committed to its plans to reduce debt and sell assets where the company isn't a No. 1 or No. 2 producer.

“We are focused on executing our transformation to a more balanced asset base between liquids and natural gas and believe our business has strong momentum despite a challenging environment with natural gas prices at 10-year lows,” McClendon said in a statement. “This quarter continued to see strong liquids production growth as we accelerate our ongoing shift to liquids, continuing success in keeping finding costs low, and the addition of a substantial amount of new proved reserves.”