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Hold On A Minute, Can Chesapeake Energy Really Turn The Ship Around?

Summary

Chesapeake Energy released Q1'16 results Thursday.

Chesapeake Energy reported an adjusted net loss of $0.10/share, meeting consensus estimates.

The energy company further announced $470 million in asset sales to Newfield Exploration Company.

Chesapeake Energy continues to push cost improvements.

The oil and natural gas driller further had to write down its asset values (again) due to the energy price rout.

After Chesapeake Energy Corp. (NYSE:CHK) informed investors in April that it succeeded in negotiating beneficial credit facility amendments including the reaffirmation of its $4.0 billion borrowing base with its lenders, the beleaguered oil and natural gas producer released highly anticipated first quarter results. Since crude oil prices have fallen to multi-year lows at the beginning of the year, it was unlikely that Chesapeake Energy would report a stellar quarter. However, the positives, I think, still outweighed the negatives.

While Chesapeake Energy's first quarter results really weren't that great, the company also said that it has agreed to sell 42,000 net acres including 400 wells in Oklahoma to Newfield Exploration Company (NYSE:NFX) for proceeds totaling $470 million. Chesapeake Energy further reaffirmed its guidance for $1.2-$1.7 billion in total gross proceeds from asset sales until the end of the year.

The announcement comes after...


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