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Sep 30, 2021

Chesapeake Q3 2021 Earnings Report

Reported third quarter 2021 results, highlighted by strong cash flow and increased guidance.

Key Takeaways

Chesapeake Energy Corporation reported a net loss of $345 million, or $3.51 per diluted share, but an adjusted net income of $269 million, or $2.38 per diluted share. The company generated $443 million in operating cash flow and $265 million in free cash flow. Increased 2021 guidance for adjusted EBITDAX and total production with no change in capital spending; increased preliminary 2022 guidance for adjusted EBITDAX significantly.

Net cash provided by operating activities of $443 million, resulting in unrestricted cash balance of $849 million

Net loss totaled $345 million, or $3.51 per diluted share; adjusted net income of $269 million, or $2.38 per diluted share

Adjusted EBITDAX of $519 million; free cash flow of $265 million; net debt at September 30 to 2021E adjusted EBITDAX ratio of 0.2x

Increased base dividend by 27%, as previously announced, to $1.75 per share annually and payable beginning in December 2021

Total Revenue
$890M
Previous year: $960M
-7.3%
EPS
$2.38
Previous year: -$15.2K
-100.0%
Adjusted EBITDAX
$519M
Barrels of oil equivalent production (mboe/d)
436K
Gross Profit
$890M
Previous year: $960M
-7.3%
Cash and Equivalents
$849M
Previous year: $306M
+177.5%
Free Cash Flow
$265M
Previous year: $276M
-4.0%
Total Assets
$7.33B
Previous year: $6.9B
+6.1%

Chesapeake

Chesapeake

Forward Guidance

Chesapeake increased its expected 2021 adjusted EBITDAX range to approximately $2.1 to $2.2 billion, up from $1.8 to $1.9 billion previously, and incorporating the earlier than expected closing of the Vine acquisition. Additionally, Chesapeake increased its preliminary 2022 adjusted EBITDAX outlook to $3.2 to $3.4 billion, up from $2.55 to $2.75 billion, with projected results largely based on recent commodity prices.