Chesapeake Energy Q2 revenues increased 41%
For the 2017 second quarter, Chesapeake's revenues increased by 41% year over year primarily due to an increase in the average realized commodity prices for the company's production and unrealized hedging gains, partially offset by a decrease in production volumes sold.
Chesapeake's revenues decreased 17% quarter over quarter due to a decrease in the average realized commodity prices for the company's production, primarily the seasonal decrease in natural gas prices and lower unrealized hedging gains.
Average daily production for the 2017 second quarter of approximately 527,600 barrels of oil equivalent (boe) increased by 2% sequentially, adjusted for asset sales, and consisted of approximately 88,400 barrels (bbls) of oil, 2.294 billion cubic feet (bcf) of natural gas and 56,900 bbls of natural gas liquids (NGL).
Average production expenses during the 2017 second quarter were $2.92 per boe, while G&A expenses (including stock-based compensation) during the 2017 second quarter were $1.45 per boe.
Combined production and G&A expenses (including stock-based compensation) during the 2017 second quarter were $4.37 per boe, an increase of 7% year over year and an increase of 4% quarter over quarter driven by a decrease in producing well count due to divestitures resulting in reduced cost recovery in G&A.
Gathering, processing and transportation expenses during the 2017 second quarter were $7.44 per boe, a decrease of 7% year over year and a nominal decrease quarter over quarter.
Chesapeake reported net income available to common stockholders of $470 million, or $0.47 per diluted share, while the company's EBITDA for the 2017 second quarter was $812 million.
Adjusting for unrealized gains on commodity derivatives, impairments related to the reduction of transportation commitments on the Gulf Crossing pipeline, the gain on repurchase of debt and other items that are typically excluded by securities analysts, the 2017 second quarter adjusted net income attributable to Chesapeake was $146 million, or $0.18 per diluted share, while the company's adjusted EBITDA was $461 million. ■