Chesapeake Energy Corporation (NYSE:CHK) reported first quarter production at the top end of guidance, with output averaging 528,000 barrels oil equivalent per day.
The North American oiler had previously given guidance of 515,000 to 535,000 boepd.
In terms of oil production only, the company averaged 83,700 barrels per day and it expects to reach a run rate of 100,000 bopd by year-end.
Revenues increased by 41% year-on-year, 36% quarter-on-quarter, thanks to improved prices and hedging arrangements.
Net income available to common stockholders was reported at US$75mln, which is 8 cents per share, while earnings (EBITDA) amounted to US$455mln.
Nonetheless, Chesapeake shares opened 6.3% lower trading at US$5.20 per share.
Chesapeake chief executive Doug Lawler said: “Our operational momentum continues to build in our Eagle Ford, Powder River Basin and Mid-Continent oil assets, as we remain on track to reach our production target of 100,000 barrels of oil per day by year-end.
“We expect our production to grow significantly in the second half of 2017 as we place more wells to sales, and as a result, we have raised the bottom range of our 2017 production guidance.
“We remain focused on improving our balance sheet and decreasing our cash costs, while improving the capital efficiency from our operations. We look forward to reporting our results as the year progresses."