![Chesapeake Energy profit beats on higher output of natural gas](https://i-invdn-com.investing.com/news/LYNXMPEE410UA_L.jpg)
By Arshreet Singh
(Reuters) -U.S. oil and gasoline firm Chesapeake Power Corp (NYSE:) on Tuesday beat estimates for first-quarter revenue on greater manufacturing of pure gasoline regardless of decrease costs.
The US has emerged because the world’s largest LNG exporter after Western sanctions on main provider Russia, which has boosted demand for U.S. pure gasoline and inspired producers to extend output.
“Chesapeake turned much more wells to sale this quarter,” mentioned Gabriele Sorbara of Siebert Williams Shank & Co, including that the corporate put 53 wells to manufacturing, greater than the brokerage’s estimate of 36 wells, which led to extra exercise and “drove the volumes”.
The corporate, nevertheless, mentioned in February that it will drop three drilling rigs within the coming months and would cut back gasoline output by 4% to six% this yr as costs of fell about 37% from final yr as greater output collided with weaker heating demand.
The transfer adopted that made by Comstock Assets (NYSE:), which earlier disclosed it will take down two rigs in coming months as a result of weaker costs.
Chesapeake expects to drill 35 to 45 wells and place 30 to 35 wells on manufacturing within the second quarter.
Its web manufacturing within the January-March quarter was about 4.1 billion cubic toes equal per day, up 9.4% from final yr and consisted of about 90% pure gasoline and 10% whole liquids.
Chesapeake, which had introduced plans to promote its oil place to concentrate on manufacturing of tremendous cooled gasoline, in February mentioned it will promote oil property in South Texas to chemical maker INEOS for $1.4 billion.
Money proceeds from the asset gross sales have helped the corporate “climate weaker (gasoline) costs close to time period,” mentioned Sorbara.
The Oklahoma Metropolis-based firm reported adjusted earnings of $1.87 per share, whereas analysts had anticipated $1.72 per share, in response to Refinitiv knowledge.