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Published on : Nov 05, 2014

Chesapeake Energy Corp.’s third quarter revenue surpassed Wall Street expectation after it nearly tripled. The sharp boost is a result of the significantly higher revenue in its oil and natural gas segment and a greater production.

The previous aggressive strategies played by Chesapeake involving land-grabbing didn’t pay off as the company was left spending more than it earned. Under the new leadership of CEO Doug Lawler, the energy firm has sold multiple assets to pay off its own debts.

Last month, Chesapeake agreed to sell off a portion of its gas business in the Marcellus and Utica share formations for US$5.38 billion.

The company also completed its side entity of oil and natural gas business in June. The entity is now called Seventy Seven Energy Inc. The division earned about US$2.2 billion in revenue in 2013 through Chesapeake offered rig relocation, hydraulic fracturing and drilling, among other services.

On the other hand, most natural gas producers including Chesapeake have been receiving insufficient prices for their product as there are not enough pipelines to transport the gas to the markets.

Lawler mentioned that the company has witnessed significant improvements in efficiency. Operating expenses moved up 2.2 percent to reach US$4.53 billion in the latest quarter.

Chesapeake displayed an overall profit of US$662 million this year, which is up from last year’s US$202 million. Shares increased to 26 cents per share from the previous 24 cents per share.

After excluding share redemption of a subsidiary, earnings dropped from last year’s 43 cents per share to the current 38 cents per share.