On May 4, Chesapeake Energy
- Hedging strategies exploited by the company to protect it from commodity price swings posted an unrealized after-tax mark-to-market loss of $193 million.
- The company's daily natural gas equivalent production rose 12.3% year over year.
- Excluding the sucker-punch suffered by its hedging program, the company's adjusted earnings per share came to $0.87 for the quarter.
- Chesapeake is rated five stars by the community brain of Motley Fool CAPS, as is fellow natural gas player and Inside Value pick Cimarex
(NYSE:XEC) and Global Gains energy champ Sasol(NYSE:SSL) .
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,579.8 |
$1,944.6 |
(18.8%) |
|
Net Profit |
$258.0 |
$623.7 |
(58.6%) |
|
EPS |
$0.50 |
$1.44 |
(65.3%) |
|
Diluted Shares |
516.4 |
431.5 |
19.7% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
91% |
93.9% |
(2.9) |
|
Operating Margin |
30.7% |
48.9% |
(18.2) |
|
Net Margin |
16.3% |
32.1% |
(15.8) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3.6 |
$38.3 |
(90.7%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Long-Term Debt |
$8,371.3 |
$6,320.9 |
32.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,123.5 |
$1,046.9 |
7.3% |
|
Capital Expenditures* |
$1,278.9 |
$1,087.6 |
17.6% |
Related Foolishness:
- Fast Pitch: Chesapeake Energy
- Apple vs. Chesapeake Energy: Chesapeake Energy
- Chesapeake Energy vs. Sasol: Chesapeake Energy
Chesapeake Energy is a Motley Fool Inside Value recommendation. To find out the Inside Value team's perspective on Chesapeake's intrinsic value (among dozens of other stocks), check out 30-day free trial.
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