On Feb. 22, Chesapeake Energy (NYSE:CHK) released fourth-quarter earnings for the period ended Dec. 31.

  • Earnings per share adjusted for non-recurring events came in at $0.90, a 7% increase year over year, and significantly higher than the $0.77 analyst consensus estimate.
  • Similarly, Q4 revenue blew out analyst estimates, as it was up 6.7% to $1.9 billion year over year, versus expectations of $1.5 billion.
  • The company's average daily production for the quarter averaged 1.65 billions per cubic feet equivalient, an increase of 17% and the company's 22nd consecutive quarter of sequential U.S. production growth.
  • A full 971 Motley Fool CAPS players peg Chesapeake as an "outperform."

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,867.6

$1,751.0

6.7%

Net Profit*

$445.5

$431.8

3.2%

EPS

$0.96

$1.11

(13.5%)

Diluted Shares

491.0

403.7

21.6%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Operating Margin

44.7%

44.2%

0.5

Net Margin

23.9%

24.7%

(0.8)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$2.5

$60.0

(95.8%)



Liabilities

Q4 2006

Q4 2005

Change

Long-Term Debt

$7,375.5

$5,489.7

34.4%



Learn the ways of the balance sheet.

Cash Flow Highlights

2006

2005

Change

Cash From Ops.

$1,861.1

$829.5

124.3%



Find out why Fools always follow the money.

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