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Chesapeake Energy has unveiled its financial and operational results for first quarter of 2024

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The company reported a net income of $26 million, or $0.18 per fully diluted share, with adjusted net income standing at $80 million, or $0.56 per share. Notably, net cash provided by operating activities amounted to $552 million, with adjusted EBITDAX reaching $508 million and free cash flow hitting $131 million.

Chesapeake also declared a combined quarterly base and variable dividend of $0.715 per common share, payable in June 2024, following the generation of $112 million in adjusted free cash flow during the first quarter.

Nick Dell’Osso, president and chief executive officer of Chesapeake, expressed satisfaction with the company’s performance, highlighting the robustness of its portfolio and strategy in navigating market cycles. He underscored Chesapeake’s commitment to capital discipline and prudent responsiveness to prevailing market conditions, reiterating excitement about the pending combination with Southwestern, expected to close in the second half of the year.

The company’s operational update revealed a net production of approximately 3.20 bcfe per day in the first quarter, primarily comprised of natural gas. Chesapeake operated nine rigs, drilling 28 wells and placing 29 wells on production, while building an inventory of 24 drilled but uncompleted wells and 22 deferred turn-in lines. Currently, the company operates eight rigs and two completion crews, with plans to drop an additional rig in the Marcellus region around mid-year.

Furthermore, Chesapeake provided updates on its marketing and LNG strategies, announcing the signing of long-term LNG Sale and Purchase Agreements (SPAs) in February. The company continues to pursue additional LNG agreements to support its LNG strategy.

Financially, Chesapeake’s borrowing base was reaffirmed in April 2024, with aggregate commitments under its Credit Facility increased by $500 million to $2.5 billion in total.

In terms of environmental, social, and governance initiatives, Chesapeake remains committed to emission reductions and sustainability goals. The company achieved its 2025 interim GHG and methane intensity target last year and maintains 100 percent independent responsibly sourced gas certification across its entire portfolio. Additionally, Chesapeake’s culture of operational excellence and safety has led to significant improvements in its Total Recordable Incident Rate.

The company’s dedication to ESG practices was recognised by IR Magazine, which awarded Chesapeake for Best ESG Reporting by a small to mid-cap company, underscoring the quality and depth of its 2022 sustainability report. The 2023 sustainability report is expected to be published later this quarter.

 

For more information visit www.investors.chk.com