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Chesapeake Energy Q3 net loss $4.695 billion

Staff writer |
Chesapeake Energy Corporation reported financial and operational results for the 2015 third quarter. Net loss available to common stockholders of $4.695 billion, or $7.08 per fully diluted share.

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This compares to net income available to common stockholders of $169 million, or $0.26 per fully diluted share, in the 2014 third quarter.

Items typically excluded by securities analysts in their earnings estimates reduced 2015 third quarter net income by approximately $4.612 billion on an after-tax basis.

The primary source of this reduction was a noncash impairment of the carrying value of Chesapeake's oil and natural gas properties largely resulting from significant decreases in the trailing 12-month average first-day-of-the-month oil and natural gas prices as of September 30, 2015, compared to June 30, 2015.

Adjusting for this and other items, the 2015 third quarter net loss available to common stockholders was $83 million, or $0.05 per fully diluted share, which compares to adjusted net income available to common stockholders of $251 million, or $0.38 per fully diluted share, in the 2014 third quarter.

Adjusted ebitda was $560 million in the 2015 third quarter, compared to $1.236 billion in the 2014 third quarter. Operating cash flow was $476 million in the 2015 third quarter, compared to $1.293 billion in the 2014 third quarter.

The year-over-year decreases in adjusted ebitda and operating cash flow were primarily the result of lower realized oil, natural gas and natural gas liquid (NGL) prices, partially offset by higher realized hedging gains and lower production expenses, general and administrative (G&A) expenses and production taxes.


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