Chesapeake +2.5% premarket on strong Q3 results, production outlook

|About: Chesapeake Energy Corporation (CHK)|By:, SA News Editor

Chesapeake Energy (CHK) +2.5% premarket after Q3 earnings beat estimates and revenue rose 64% Y/Y to $4.87B.

Total production slipped 2% to 4B cfe/day primarily due to asset sales; adjusted for the sales, production rose ~8% Y/Y and 5% Q/Q.

Average daily natural gas liquids production rose 31%, while oil production gained 23% and natural gas production fell 10%.

Raises full-year oil-production outlook by 2M barrels to a range of 40M-42M barrels, a 28%-34% increase Y/Y; full-year 2013 drilling, completion and leasehold capex fell by $300M to $5.7B-$6B.

Expects to complete another $600M in asset disposals during Q4 after already raising $3.6B from asset sales YTD.

Operating expenses fell 28% to $4.43B.