Chesapeake Energy and Cabot Shares Dip As Investors Digest Earnings

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Chesapeake Energy Corporation (NYSE:CHK) reported higher profit for the fourth quarter as revenue showed growth. Net income for the independent oil and gas company rose to $472 million (63 cents per share) vs. $223 million (28 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter. Revenue rose 38.1% to $2.73 billion from the year-earlier quarter. Chesapeake Energy Corporation reported adjusted net income of 58 cents per share. By that measure, the company fell short of mean estimate of 59 cents per share. It fell short of the average revenue estimate of $3.05 billion.

Competitors to Watch: Gastar Exploration Ltd. (AMEX:GST), Anadarko Petroleum Corp. (NYSE:APC), Devon Energy Corporation (NYSE:DVN), Bronco Drilling Co., Inc. (NASDAQ:BRNC), EOG Resources, Inc. (NYSE:EOG), Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Crusader Energy Group Inc. (CKGRQ), Apache Corporation (NYSE:APA), and US Natural Gas Corp. (UNGS).

Cabot Oil & Gas Corporation (NYSE:COG) reported its results for the fourth quarter. Net income for the independent oil and gas company fell to $26.4 million (13 cents per share) vs. $49.1 million (24 cents per share) a year earlier. This is a decline of 46.3% from the year-earlier quarter. Revenue rose 20.5% to $268 million from the year-earlier quarter. Cabot Oil & Gas Corporation reported adjusted net income of 20 cents per share. By that measure, the company beat the mean estimate of 14 cents per share. Analysts were expecting revenue of $265.1 million.

“In 2011, we continued our focused effort primarily in two basins with outstanding results that were not only recognized in our operating performance, but also in our total shareholder return,” said Dan O. Dinges, Chairman, President and Chief Executive Officer. “We exceeded 3.0 Tcfe of total proved reserves, grew production 44 percent and reduced overall leverage at the same time.”

Competitors to Watch: EOG Resources, Inc. (NYSE:EOG), Pinnacle Gas Resources, Inc. (PINN), Vanguard Natural Resources, LLC (NYSE:VNR), Magnum Hunter Resources Corp (NYSE:MHR), Anadarko Petroleum Corp. (NYSE:APC), PrimeEnergy Corporation (NASDAQ:PNRG), SM Energy Co. (NYSE:SM), EV Energy Partners, L.P. (NASDAQ:EVEP), Continental Resources, Inc. (NYSE:CLR), and Range Resources Corp. (NYSE:RRC).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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