OREANDA-NEWS. November 13, 2014. Chesapeake Energy Corporation (NYSE:CHK) reported financial and operational results for the 2014 third quarter.

Key information is as follows:

Company reports adjusted net income of USD0.38 per fully diluted share and adjusted ebitda of US1.236 billion

Average production of approximately 726,000 boe per day increases 11% year over year, adjusted for asset sales

Capital expenditures of US1.351 billion decrease 8% year over year

Eagle Ford, Haynesville, Utica and Powder River Basin operating areas each achieve organic production growth in excess of 10% quarter over quarter

"The improvements in our capital efficiency, our focus on cost leadership and the strength and quality of our assets and talented employees are very clear in our third quarter results," stated Doug Lawler, President and Chief Executive Officer of Chesapeake. "Our results this quarter were outstanding, as adjusted production increased 11% compared to the 2013 third quarter, increased 5% sequentially and already reached our year-end exit rate target of approximately 730,000 barrels of oil equivalent per day during the month of September. We have also seen a reduction in operating expenses compared to both the 2014 second quarter and the 2013 third quarter, and we continue to see dramatic improvement in capital efficiency throughout our operating areas. The company again exceeded its production growth target while operating below our capital budget. I am very proud of our results and believe they are further evidence that our strategy and commitment to becoming a top-tier E&P company will yield long-term stockholder value."

For the 2014 third quarter, Chesapeake reported net income available to common stockholders of US169 million, or US0.26 per fully diluted share. Items typically excluded by securities analysts in their earnings estimates reduced net income available to common stockholders for the 2014 third quarter by approximately US82 million and are presented on Page 12 of this release. The primary component of this reduction was the redemption of all the outstanding preferred shares of a subsidiary, partially offset by unrealized gains on our commodity derivatives. Adjusting for these items, 2014 third quarter adjusted net income available to common stockholders was US251 million, or US0.38 per fully diluted share, as compared to adjusted net income available to common stockholders of US282 million, or US0.43 per fully diluted share, in the 2013 third quarter.

Adjusted ebitda was US1.236 billion in the 2014 third quarter, compared to US1.325 billion in the 2013 third quarter. Operating cash flow, which is cash flow provided by operating activities before changes in assets and liabilities, was US1.293 billion in the 2014 third quarter, compared to US1.412 billion in the 2013 third quarter. The year-over-year decreases in adjusted ebitda and operating cash flow were primarily the result of lower realized oil, natural gas and natural gas liquids (NGL) prices, partially offset by higher production volumes and lower operating expenses.