Oppenheimer's First Look At CHK Earnings

In a first look at Chesapeake Energy Corporation (NYSE: CHK), Oppenheimer reports that adjusted earnings of $561M, or $0.75/sh, “were $0.05/sh above consensus estimates, down 9% from a year ago, but up 7% sequentially.”

“Production was up 20% from a year ago, with liquids up 56%, but the average realized price declined, along with hedging gains,” Oppenheimer writes.

“CHK disclosed its holdings in the Utica shale (1.2M acres) and Mississippian play (1.1M acres), as well as significant additions to its Permian and Powder River/DJ Basin acreage. CHK increased its CAPEX budget to $5.5-6B for both 2011 and 2012, likely from higher drilling and completion costs.”

Chesapeake Energy Corporation closed Monday at $33.23.