Chesapeake Energy Corporation Reports 2021 First Quarter Results, Initiates Common Stock Dividend And Announces Updated Guidance

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[{"type":"text","content":"OKLAHOMA CITY, May 11, 2021 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ: CHK) today reported 2021 first quarter results, launched a cash dividend program based on strong operating cash flow performance and announced its updated 2021 guidance. Highlights include:\n\n \n \n \n \n \n \n\n \nSuccessor net income totaled $295 million, or $2.75 per diluted share Generated adjusted EBITDAX (a non-GAAP measure) of $510 million for the combined 2021 Successor and Predecessor Periods (January 1, 2021 - March 31, 2021) March 31, 2021 unrestricted cash balance of $340 million; reducing March 31, 2021 net debt (a non-GAAP measure) to adjusted 2021E EBITDAX ratio to 0.6x Launched sustainable dividend at an initial annual rate of $1.375 per share to be paid quarterly beginning in the 2021 Second Quarter; base dividend built to withstand commodity price volatility with incremental cash return strategy to be defined by year end 2021 Increased five-year cumulative free cash flow (a non-GAAP measure) outlook to ~$3 billionMike Wichterich, Chesapeake's Board Chairman and Interim Chief Executive Officer, commented, \"Our strong first quarter results demonstrate the significant value creating opportunities that lie ahead for Chesapeake. We are committed to returning meaningful cash to our shareholders and are pleased to announce a highly competitive dividend that is built to withstand commodity price cycles. With our talented employees, pristine balance sheet, operational leadership, and free cash flow outlook, I firmly believe Chesapeake is poised to deliver differential returns to our shareholders.\" \nDividend Policy and Balance Sheet Update\nFollowing Chesapeake's emergence from Chapter 11 restructuring proceedings, the company generated $409 million of operating cash flow and ended the quarter with $340 million of unrestricted cash on hand. As of April 30, 2021, Chesapeake had approximately $500 million of unrestricted cash on hand. With the company's strong liquidity position and free cash flow generation, Chesapeake's Board of Directors has declared an annual dividend on its common shares of $1.375 per share. The dividend will be paid quarterly, with the first such payment to be payable on June 10, 2021 to shareholders of record at the close of business on May 24, 2021.\nOperations Update\nChesapeake achieved an average net productio...

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