Chesapeake Energy Corp (CHK) Reports Q3 2023 Earnings: Net Income of $70 Million
Chesapeake Energy Corp (NASDAQ:CHK) reports Q3 2023 net income of $70 million, or $0.49 per diluted share.
Net cash provided by operating activities stands at $506 million.
Company returned more than $200 million to shareholders through dividends and share buybacks.
CHK entered into a new agreement with Vitol to provide gas sufficient to produce up to 1 mtpa of LNG for 15 years.
On October 31, 2023, Chesapeake Energy Corp (NASDAQ:CHK) released its third quarter 2023 financial and operating results. The company reported a net income of $70 million, or $0.49 per diluted share, and net cash provided by operating activities of $506 million. CHK also returned more than $200 million to shareholders through base dividends and share buybacks.
Operational and Financial Performance
CHK delivered a total net production of 3,495 mmcfe per day and adjusted EBITDAX of $580 million. The company's operational performance remained strong despite lower commodity prices, with CHK's President and CEO, Nick DellOsso, stating,
Our team is operating at the highest and safest levels, and delivered another strong quarter."
CHK also reported cash on hand of approximately $713 million as of September 30, 2023.
Shareholder Returns and Credit Rating
CHK returned over $200 million to shareholders through base dividends and share buybacks in Q3 2023. The company also announced a total quarterly dividend of $0.575 per common share to be paid in December 2023. CHK's credit rating outlook was upgraded to positive watch while maintaining BB at S&P Global Ratings, advancing its path toward Investment Grade credit status.
New Agreement with Vitol
CHK entered into a new heads of agreements (HOA) with Vitol to provide gas sufficient to produce up to 1 mtpa of LNG with net back indexed to the Japan Korea Marker (JKM) for 15 years. This agreement is part of CHK's strategy to 'Be LNG Ready' and capitalize on its strong financial position and leading operating performance.
Sustainability Efforts
CHK joined the Oil & Gas Methane Partnership (OGMP) 2.0, a flagship oil and gas reporting and mitigation program of the United Nations Environment Program (UNEP). The company also announced a partnership with Eavor Inc. and the U.S. Air Force to provide Eavor-LoopTM generated geothermal energy to the Joint Base San Antonio Facility in Texas.
Overall, Chesapeake Energy Corp (NASDAQ:CHK) demonstrated a strong financial and operational performance in Q3 2023, with a focus on shareholder returns, strategic partnerships, and sustainability efforts.
Explore the complete 8-K earnings release (here) from Chesapeake Energy Corp for further details.
This article first appeared on GuruFocus.
