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Jun 30, 2023
Chesapeake Q2 2023 Earnings Report
Reported strong second quarter results driven by operational efficiency and strategic focus.
Key Takeaways
Chesapeake Energy Corporation reported a strong second quarter in 2023, marked by $515 million in operating cash flow, a net income of $391 million, and adjusted EBITDAX of $524 million. The company increased its base dividend and continued share repurchases, demonstrating a commitment to shareholder returns. Operational efficiency improvements and strategic agreements position Chesapeake well for future growth.
Net income was $391 million, or $2.73 per diluted share; adjusted net income of $92 million, or $0.64 per share.
Total net production reached 3,653 mmcfe per day with adjusted EBITDAX of $524 million.
The base dividend was increased by approximately 4.5%, resulting in a total quarterly dividend of $0.575 per common share.
Approximately $125 million in share repurchases were completed during the quarter, with $515 million returned YTD through dividends and repurchases.
Forward Guidance
Chesapeake Energy is focused on delivering affordable, reliable, lower carbon energy with peer-leading returns to shareholders. The company's operating plan remains flexible and is prepared for further adjustments based on market conditions.
Positive Outlook
- Strong balance sheet and deep liquidity.
- Leading rock, returns and runway of portfolio.
- Ability to repurchase shares at a compelling valuation.
- Growth of base dividend.
- Focus on being LNG Ready.
Challenges Ahead
- Impact of inflation and commodity price volatility resulting from Russia’s invasion of Ukraine.
- COVID-19 and related labor and supply chain constraints.
- Effects of the current global economic environment, including impacts from higher interest rates and recent bank closures and liquidity concerns at certain financial institutions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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