Chesapeake Energy reports $964 million Q1 loss
Chesapeake Energy credits the loss to a noncash impairment of the carrying value of Chesapeake's oil and natural gas properties of approximately $853 million.
That loss was a result of decreases in the trailing 12-month average first-day-of-the-month oil and natural gas prices.
The 2016 first quarter adjusted net loss was $120 million to common stockholders.
Chesapeake Energy's first-quarter revenues declined by 39 percent since last year.
Its average production expenses were $3.36 per barrel of oil equivalent, a decrease of $31 percent from the first quarter in 2015. The general and administrative expenses were $0.79 per BOE, which was a 13 percent decrease from 2015.
CEO Doug Lawler, Chesapeake commented, "Chesapeake is delivering on all four of the focus points for 2016 that we stated in February: maximizing liquidity, optimizing our portfolio, increasing cash flow and reducing debt.
"We are pleased this morning to announce approximately $500 million of incremental asset sales above the $700 million we announced in late February.
"The STACK acreage sale we are announcing today accelerates value from a portion of our undeveloped acreage that currently generates very little cash flow, giving us the ability to enhance current liquidity.
"This transaction contributes substantially to achieving our previously announced target of an incremental $500 million to $1 billion of asset sales by year-end.
"We anticipate subsequent divestitures during the second and third quarters. ■