Chesapeake Energy Shares Climb after Q4 Results (CHK)

Chesapeake Energy Corporation (NYSE: CHK) shares are climbing in today’s trading after the company announced its fourth-quarter financial results. The stock reached a 52-week high of $34 in mid-day trading, and at last check, it was up 6.09% to $33.96, with volume up from daily average of 12.70 million to 21.04 million.

Chesapeake Energy reported fourth-quarter net income of $180 million, or $0.28 per diluted share. The company’s fourth-quarter adjusted net income came in at $478 million, or $0.70 per diluted share. It reported fourth-quarter revenue of $2 billion.

Chesapeake Energy reported fourth-quarter adjusted EBITDA of $1.3 billion. The company’s operating cash flow in the quarter was $1.2 billion.

For full year 2010, Chesapeake Energy reported net income of $1.7 billion, or $2.51 per diluted share. The company’s full-year adjusted net income came in at $2 billion, or $2.95 per diluted share. The company’s full-year 2010 revenue came in at $9.4 billion. Chesapeake reported adjusted EBUTDA of $5.1 billion for the full year 2010.

Chesapeake Energy also provided an update on its 25/25 Plan, which was announced last month. The 25/25 Plan outlines the company’s intention to lower its long-term debt by 25% during 2011-12, while also growing net natural gas and oil production by 25% in the same period. The company said that it expects to achieve the targeted reduction in debt levels mainly through the sale of assets and from lowering its leasehold spending during the period.

As part of the plan, the company recently closed its Niobrara Shale cooperation agreement through which China’s CNOOC acquired a 33.35 undivided interest in the company’s 800,000 net natural gas and oil leasehold acres in the DJ and Powder River Basins in Colorado and Wyoming for around $4,750 per net acre.

Chesapeake Energy is an Oklahoma City, Oklahoma-based producer of natural gas in the U.S.

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