Natural gas producer Chesapeake Energy Corporation (CHK) late Wednesday posted a smaller fourth quarter loss, and adjusted results beat analyst expectations.
The Oklahoma City-based company reported a fourth-quarter net loss of $530 million U.S., or 84 cents U.S. per share, compared with a loss of $1 billion U.S., or $1.74 U.S. per share, in the year-ago period. Excluding special items, adjusted profit was 77 cents U.S. per share.
On average, Wall Street analysts expected a smaller adjusted profit of 70 cents U.S. per share.
The company cited higher production and cost-cutting measures for the higher-than-expected adjusted results.
Chesapeake Energy shares rose 59 cents U.S., or 2.2%, in premarket trading Thursday.
The Bottom Line
Experts had removed shares of CHK from their "recommended" list on Aug.4, 2008 when the stock was trading at $45.25 U.S. The company has a 1.14% dividend yield, based on last night’s closing stock price of $26.36 U.S. The stock has technical support in the $22 U.S. price area. If the shares can firm up, there could be overhead resistance around the $28-$30 U.S. price levels. But experts would remain on the sidelines for now.
Chesapeake Energy Corporation (CHK) is not recommended at this time, holding a Dividend.com DARS Rating of 3.3 out of 5 stars.
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