Oklahoma-based Chesapeake Energy boosted its 2015 production forecast Wednesday despite taking a$3.78 billion first quarter loss tied to low oil prices.
The company reported a net loss attributable to stockholders of $3.78 billion, or $5.72 per diluted share, a sizable drop from the $374 million in profits Chesapeake booked during the same quarter last year.
“The primary source of this reduction was an impairment in the carrying value of Chesapeake’s oil and natural gas properties largely resulting from significant decreases in the trailing 12-month average first-day-of-the-month oil and natural gas prices,” Chesapeake Energy said.
Adjusted EBITDA fell to $928 million in the first quarter from $1.51 billion a year ago while operating cash flow dropped to $910 million from $1.61 billion in the first quarter of 2014.
Despite taking hits from low energy prices Chesapeake saw its average production jump to 680,000 barrels of oil equivalent per day, a 14 percent year over year increase .
The company’s average daily production in the first quarter consisted of 121,900 barrels of oil, 2.9 billion cubic feet of natural gas and 75,800 barrels of NGL.
Chesapeake also increased its 2015 production guidance to 640,000 to 650,000 boe per day.
The company said its planning to add between 600 to 700 Eagle Ford locations following successful down spacing test results and it will test its first Upper Eagle Ford well in the 2015 fourth quarter.
Chesapeake was operating 54 rigs as of the end of the quarter, down from 67 operated rigs during the fourth quarter of 2014.
“We remain on target to balance our capital spending and our cash flow by year-end, and the capital efficiencies that we are seeing in each of our operating areas are helping to strengthen that cash flow,” CEO Doug Lawler said.