CHK Chesapeake Energy Corporation

By Carlo Martuscelli

Chesapeake Energy Corp. (CHK) on Tuesday reported a narrowed loss in third-quarter profit and said it is lowering its capital expenditure targets for next year.

The Okla.-based oil-and-gas company posted a quarterly loss of $61 million, or 6 cents a share, compared with a loss of $146 million, or 19 cents, for the same period a year earlier. Excluding items, Chesapeake reported an adjusted loss of 11 cents a share for the quarter, compared with analysts' forecasts of a 9 cent loss.

Sales fell to $2.06 billion from $2.42 billion.

Daily production in the third quarter averaged at about 478,000 barrels of oil equivalent a day, the company said.

Chesapeake Energy said it is looking to achieve positive free cash flow in 2020. The company said it is lowering its capital expenditure forecast by about 30% in 2020. It is also looking to lower 2020 production and general and administrative costs by about 10%.

"Our capital efficiency improvements, expected reduction in cash costs and anticipated capital plan position us to target free cash flow in 2020," said Doug Lawler, president and chief executive.

In the fourth quarter, the company said it expects oil production to grow 10% compared with the third quarter.

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com; @carlomartu

(END) Dow Jones Newswires

November 05, 2019 07:36 ET (12:36 GMT)

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