10-QPeriod: Q1 FY2012

EXPAND ENERGY Corp Quarterly Report for Q1 Ended Mar 31, 2012

Filed May 11, 2012For Securities:EXEEXEELEXEEWEXEEZ

Summary

Chesapeake Energy Corporation's Q1 2012 report shows a net loss of $28 million, an improvement from the $162 million loss in the prior year's first quarter. Total revenues increased significantly to $2.42 billion, driven by higher production volumes in natural gas and oil, as well as growth in marketing, gathering, and oilfield services. Despite the revenue increase, the company faced a sharp decline in natural gas prices, impacting profitability. Chesapeake continued to invest heavily in exploration and development, with capital expenditures totaling $3.47 billion, primarily focused on liquids-rich plays. The company's financial position saw an increase in total assets to $45.6 billion and total liabilities to $25.6 billion. Long-term debt rose to $13.1 billion, reflecting increased borrowings. Chesapeake's strategy to transition towards a more liquids-heavy portfolio is evident in its production mix and capital allocation. The company's liquidity remains a key focus, with efforts underway to manage debt and fund future capital needs through asset monetizations and operational cash flow.

Financial Highlights

44 data points
Beta

Revenue

$2.42B

Net Income

-$28.00M

-1.2% Net Margin

EPS (Diluted)

$-0.11

Total Assets

$45.59B

Cash & Equivalents

$438.00M

Free Cash Flow

$274.00M

Financial Statements
Beta
Revenue$2.42B
Operating Expenses$2.41B
Operating Income$6.00M
Interest Expense$174.00M
Net Income-$28.00M
EPS (Basic)$-0.11
EPS (Diluted)$-0.11
Shares Outstanding (Basic)642.00M
Shares Outstanding (Diluted)642.00M

Key Highlights

  • 1Net loss narrowed to $28 million in Q1 2012 from $162 million in Q1 2011.
  • 2Total revenues increased to $2.42 billion, up from $1.61 billion year-over-year, driven by higher production and services revenue.
  • 3The company experienced significantly lower realized natural gas prices, averaging $2.35 per mcf, down from $5.31 in the prior year's quarter.
  • 4Capital expenditures for exploration and development were $3.47 billion, with a continued strategic shift towards liquids-rich plays.
  • 5Long-term debt increased to $13.1 billion, reflecting borrowing to fund capital expenditures.
  • 6Production of liquids increased significantly by 69% year-over-year, reflecting the company's strategic focus.
  • 7Chesapeake is actively pursuing asset monetizations and joint ventures to manage liquidity and reduce debt.

Frequently Asked Questions

Chesapeake Energy reported a net loss of $28 million for the first quarter of 2012, an improvement from a net loss of $162 million in the same period of 2011.

Total revenues increased significantly to $2.42 billion in the first quarter of 2012, compared to $1.61 billion in the first quarter of 2011. This growth was driven by higher production volumes and increased revenue from marketing, gathering, compression, and oilfield services.

Chesapeake Energy is strategically shifting its focus towards liquids-rich plays to capitalize on the price differential between natural gas and liquids. This is reflected in their capital allocation and production mix, with liquids production showing a 69% year-over-year increase.

The company's long-term debt increased to $13.1 billion, reflecting borrowings to fund capital expenditures. Chesapeake plans to manage its liquidity and debt levels through asset monetization transactions, joint ventures, and operational cash flow, with a target to reduce net long-term debt.