Final fling?

7 August 2012 By Christopher Swann

Investors in the cash-strapped gas company were cheered by promises of belt tightening. A new shareholder-selected board adds credibility to this pledge. Yet with CEO McClendon boosting spending on new energy-rich land by 25 pct this year, owners shouldn’t get too excited yet.

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Chesapeake Energy posted an increase in second-quarter profit after it sold its midstream subsidiary, and said it expects to sell another $7 billion in assets during the current quarter.

Profit in the quarter was $929 million, or $1.29 per share, up from $467 million or 68 cents per share in the same period a year ago.

Excluding a $584 million gain from the sale of its Chesapeake Midstream Partners, a $490 million gain in the value of its energy derivative positions, and other one-time items, earnings per share were 6 cents.

Analysts had, on average, forecast earnings per share of 7 cents, according to Thomson Reuters I/B/E/S.

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