Chesapeake Energy Corp (NYSE:CHK) increased the outlook by 1.5 percent- expects the oil production to go up to 730,000 units

Chesapeake Energy Corp (NYSE:CHK) posted its earnings report on August 6, 2014. The company’s costs were higher and the profits were lower than what it had originally expected. Chesapeake Energy Corp (NYSE:CHK) is one of the largest fuel energy companies of United States. Not only does it drill wells but it also produces natural gas. The company, despite its lower profits, was confident that its end of the year’s figures would go up, for a number of its wells are now connected via the new pipelines.

The company owns hundreds of wells in Utica and Marcellus regions of the Midwestern and Northeastern United States land. The company drilled a number of these wells during the earlier part of the year; however, they are still not connected with the pipeline infrastructure, and so oil and gas cannot be transported from these wells to the market.

Chesapeake Energy Corp (NYSE:CHK) has recently updated its yearly production output by 1.5 percent as the company is expecting the pipeline infrastructure to be completed soon. The chief executive officer of the company, Doug Lawler, while talking to the press agents during a conference, said that the company expects an increase of 35 percent in its well production. He further commented that the company is quite confident as its future looks promising.

Chesapeake Energy Corp (NYSE:CHK) posted a total profit of $145 million for its second quarter, with an EPS (earnings per share) of 22 cents. These figures are quite low when compared with the numbers of last year; the company reported total profits of $467 million with an EPS of 66 cents for the same quarter a year back.

The earnings, when adjusted for the losses that resulted due to the repurchase of debt and the gains that resulted from company’s fixed asset’s sales, came to a lump sum of 36 cents for each share. The adjusted earnings were still far below the estimates of 44 cents.

The company missed the estimates due to an increase in the production tax rates; the new rate has been increased from 95 cents to $1.14 for each barrel of oil. Moreover, the company experienced high operational costs during its recent quarter.

Coming to the production figures of natural gas and oil, Chesapeake Energy Corp (NYSE:CHK) saw an increase of 13 percent in its production when compared with the production figures of last year: the company, on average, produced 695,000 units of oil per day.

The company said that it expects the production to go up to as much as 730,000 barrels per day. These expectations of the company exceeded the analysts’ estimates and made the 2015 predictions quite insignificant.

The production of ethane and butane by Chesapeake Energy Corp (NYSE:CHK) increased by 72 percent; however, the mean price that the company received for these products fell by 13 percent and came to $21.03/barrel. The company said that the prices of NGL have been affected by the demand for butane and propane.

Share of Chesapeake Energy Corp (NYSE:CHK), on the last trading day, started at a price of $25.54 and closed at an increased price of $26.19, with the highest price touching the figures of $26.41.