(Reuters) -Chesapeake Energy on Tuesday posted a fall in second-quarter profit on lower natural gas prices and production.
The U.S. oil and gas company’s profit fell to $391 million, or $2.73 per share, in the quarter ended June 30, from $1.24 billion, or $8.27 per share, from a year earlier.
U.S. natural gas prices averaged $2.417 per million British thermal units (Btu) during the April-June quarter, nearly 63% down from the year-ago quarter, when demand for the commodity skyrocketed against the backdrop of Russia’s invasion of Ukraine.
Relatively mild temperatures and higher inventories had also dented natural gas prices.
In May, the company said it anticipated volatility in natural gas markets to persist, and that it could hold off bringing some wells online if low prices continue.
Chesapeake’s quarterly net production was down 11.6% at 3.65 billion cubic feet equivalent per day, compared to previous year. Out of which 96% accounted for natural gas and 4% was total liquids.
The number of rigs drilled for natural gas in the United States fell by 36 to 124 in the second quarter, according to data from oil services firm Baker Hughes.
(Reporting by Tanay Dhumal in Bengaluru; Editing by Maju Samuel)
