Chesapeake Energy‘s stock tumbles after wider-than-expected loss

Shares of Chesapeake Energy Corp. sank 9.6% in premarket trading Tuesday, after the oil and gas company reported a wider-than-expected loss on revenue the fell more than forecast. The net loss narrowed to $101 million, or 6 cents a share, from $169 million, or 19 cents as share, in the year-ago period. Excluding non-recurring items, the adjusted per-share loss was 11 cents, compared with the FactSet consensus for a loss of 10 cents. Revenue declined 14.8% to $2.06 billion, below the FactSet consensus of $2.12 billion. Oil and gas revenue fell 2.4% to $1.17 billion, but topped the FactSet consensus of $1.15 billion, while marketing sales dropped 27% to $889 million to miss expectations of $895.3 million. Average daily production grew 3% to 478,000 barrels of oil equivalent. The company expects flat oil production for the year with capital expenditures of $1.3 billion to $1.6 billion. For 2020, the company expects to cut production and expenses by about 10%. The stock has dropped 25.7% year to date through Monday, while the SPDR Energy Select Sector ETF has gained 6.7% and the S&P 500 has advanced 22.8%.

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