It is realigning its financial structure to reduce costs that will help Chesapeake to improve its bottom line going forward. Hence, Chesapeake is facing tough challenges, but can it bounce back?Īs we saw, Chesapeake's earnings performance was extremely disappointing, but management is positive about bringing the company back on track. Northeast that caused oil, gas, and liquid prices to fall, creating further pressure on the bottom line. In addition, there was oversupply in the U.S. Higher-than-expected costs, along with an increase in production taxes, were the key reasons behind the drop in the bottom line last quarter. Chesapeake's profit more than halved year-over-year, with an earnings per share figure of $0.22 as compared to $0.66 last year, and also lagged Wall Street's expectations of $0.44 per share. However, the bottom line performance was disappointing. Its revenue for the quarter rose 10% year-over-year to $5.15 billion, and also topped the consensus estimate of $4.6 billion. The company's weak performance in the recent months doesn't come as a surprise, as Chesapeake Energy reported a mixed set of numbers for the second quarter, where its revenue increased but profit declined. Natural gas producer Chesapeake Energy ( NASDAQ: CHK) has been in a state of decline over the past three months, with shares dropping to the tune of almost 17%.
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