US Chesapeake Energy incurs USD2.06b loss in Q3 

(MENAFN) Chesapeake Energy Corp. stated that it incurred a USD2.06 billion loss in the third quarter, compared with a profit of USD879 million in last year's same period, reported AP.

The natural gas firm said that revenue declined by 25 percent, reaching USD2.97 billion from USD3.98 billion a year ago.

Several factors contributed to third-quarter loss, such as lower natural gas prices and one-time charges, which include a USD28 million non-cash, after-tax charge related to losses on sales and impairment of certain fixed assets.

In addition to a non-cash, after-tax impairment charge of USD2.02 billion related to the carrying value of oil and natural gas properties, and an after-tax gain of USD19 million related to an investment sale.

The Oklahoma City-based company had an unrealized non-cash after-tax loss of USD63 million on derivatives.

Adjusted earnings were USD33 million, when excluding the special items.

Natural gas output jumped 24 percent on a daily basis compared with 2011's same quarter to 4.142 billion cubic feet equivalent; however, the company sold natural gas at an average price of USD1.97 per 1,000 cubic feet, compared with USD4.82 per 1,000 cubic feet a year ago.

On the other hand, oil prices grew to USD90.79 per barrel from USD82.47.

It is worth noting that Chesapeake's natural gas output is forecasted to fall 7 percent in 2013 due to the company's strategy to focus on oil and gas liquids, with liquids production expected to grow 29 percent in the period.