OREANDA-NEWS. August 09, 2012. Chesapeake Energy Corporation (NYSE:CHK) tannounced financial and operational results for the 2012 second quarter, reported the press-centre of Chesapeake Energy.

For the 2012 second quarter, Chesapeake reported net income to common stockholders of USD 929 million (USD 1.29 per fully diluted common share), ebitda of USD 2.385 billion (defined as net income before income taxes, interest expense, and depreciation, depletion and amortization) and operating cash flow of USD 895 million (defined as cash flow from operating activities before changes in assets and liabilities) on revenue of USD 3.389 billion and production of 347 billion cubic feet of natural gas equivalent (bcfe).

The company’s 2012 second quarter results include various items that are typically not included in published estimates of the company’s financial results by certain securities analysts. Excluding such items for the 2012 second quarter, Chesapeake reported adjusted net income to common stockholders of USD 3 million (USD 0.06 per fully diluted common share) and adjusted ebitda of USD 803 million.

The primary excluded items from the 2012 second quarter reported results are a net after-tax gain on investments of USD 584 million, primarily related to the sale of all of the company’s interests in Access Midstream Partners, L.P. (NYSE:ACMP; formerly named Chesapeake Midstream Partners, L.P.), unrealized noncash after-tax mark-to-market gains of USD 490 million resulting from the company’s oil, natural gas liquids (NGL) and natural gas and interest rate hedging programs and a noncash after-tax charge of USD 148 million related to the impairment of certain of the company’s property and equipment.

Management Comments

Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, said, “We are taking aggressive and focused actions to increase cash flow and net asset value per share while also reducing long-term debt as we continue our ongoing transformation to a more balanced asset base between higher-margin liquids and lower-margin natural gas. We are prudently deploying our capital as we focus on developing and harvesting the 10 core plays in which Chesapeake has built a #1 or #2 position.

“As importantly, we continue to execute on our asset sale process. In the 2012 third quarter, we anticipate entering into approximately USD 7.0 billion of asset sales, including the sale of Permian Basin and midstream assets. These transactions will be in addition to the USD 4.7 billion of asset sales completed in the 2012 first half. In combination with further asset sales planned for the 2012 fourth quarter, we have increased our plans for asset sales this year to a range of USD 13.0 to USD 14.0 billion, which will enable us to accomplish our planned 25% long-term debt reduction to USD 9.5 billion by year-end 2012 in accordance with our 25/25 Plan we announced in January 2011.

“Finally, as a result of Chesapeake’s strong operational performance, ongoing drilling efficiency gains and an increased focus on optimal asset development, we have increased our production guidance for 2013 despite a USD 750 million decrease in our drilling and completion capital expenditure plans for next year.”