Chesapeake Energy 1995 Annual Report Download - page 26

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RESULTS OF OPERATIONS
GENERAL For the fiscal year ended June 30, 1995,
Chesapeake realized net income of $11.7 million, or $0.94
per common share, on total revenues of $67.3 million. This
compares with net income of $3.9 million, or $0.36 per
common share, on total revenues of $29.8 million in fiscal
1994, and a net loss of $365,000, or $0.10 per common
share, on total revenues of $18 million in fiscal 1993. The
significantly higher earnings in fiscal 1995 were largely the
result of higher production and lower costs per unit of
p roductio n.
OIL AND GAS SALES During fiscal 1995, Chesapeake
increased oil and gas sales 154% to $57.0 million versus
$22.4 million for fiscal 1994 and 391% from the fiscal
1993 amount of $11.6 million. The increase in oil and gas
sales resulted from strong growth in production volumes
partially offset by decreased prices. For fiscal 1995, the
company produced 31.9 Bcfe, at a weighted average price
of $1.78 per Mcfe, compared to 10.2 Bcfe produced in
fiscal 1994 at a weighted average price of $2.21 per Mcfe,
and 4.3 Bcfe produced in fiscal 1993 at a weighted average
price of $2.68 per Mcfe. This represents production
growth of 214% and 642% over fiscal 1994 and 1993,
respectively.
OIL AND GAS PRODUCTION The increases in production
volumes during the year reflect Chesapeake's successful
exploration and development program. The following table
shows the company's production by major field area for
fiscal 1995 and fiscal 1994:
Giddings
1995
FOR THE YEARS ENDED JUNE 30, 1994
PRODUCTION
(MMCFE)
PERCENT
OF TOTAL
PRODUCTION
(MMCFE)
PERCENT
OF TOTAL
-Navasota River 16,881 53% 2,546 26%
- Independence 3,784 12
- Other Giddings 5,976 19 4,289 42
Total Giddings 26,641 84 6,835 68
Oklahoma
- Knox 1,255 483
Golden Trend 1,880 61,252 12
- Sholem Alechem 749 2348 3
Total Oklahoma 3,884 12 1,683 16
All Other Fields 1,422 41,634 16
Total Production 31,947 100% 10,152 100%
24 CHESAPEAKE ENERGY CORPORATION