November 1, 2012 / 8:49 PM / 6 years ago

Chesapeake Energy has quarterly net loss on writedowns

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, on April 17, 2012. REUTERS/Steve Sisney

(Reuters) - Chesapeake Energy Corp (CHK.N) reported a net loss on Thursday compared with a year-ago profit, as low natural gas prices prompted the U.S. oil and gas company to write down the value of some assets.

Chesapeake, which has large exposure to low natural gas prices, has pledged to sell about $14 billion in assets this year to cut its debt and improve liquidity. Chesapeake is also drilling for more pricey crude oil and natural gas liquids.

The company said it is pursuing the sale of some of its properties in the Eagle Ford basin in south Texas and expects a joint venture for its acreage in the Mississippi Lime in Oklahoma and Kansas to be announced by the end of the year.

The loss in the third quarter was $2.1 billion, or $3.19 cents per share, compared with a profit of $879 million, or $1.23 cents per share a year earlier.

Excluding items, Chesapeake had a profit of 10 cents per share. Analysts on average had expected a profit of 10 cents per share, according to Thomson Reuters I/B/E/S.

Chesapeake’s daily production rose 24 percent from a year ago to average 4.142 billion cubic feet equivalent. The amount of oil and natural gas liquids it produced daily rose 10 percent from the second quarter to 143,000 barrels.

Chesapeake shares fell slightly to $19.60 in post-market trading. The stock closed at $20.07 on the New York Stock Exchange.

Reporting By Anna Driver; Editing by David Gregorio and Andre Grenon

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