Chesapeake shares climb 4.4 percent after earnings report
(Reuters) - Shares in Chesapeake Energy Corp (CHK.N) rose 4.4 percent in premarket trading on Tuesday after the company increased its production forecast and said it was close to selling off some key assets in West Texas.
The shares have rebounded from May lows as natural gas prices turned higher after hitting 10-year lows during the second quarter. But through Monday's close, the shares remain down 21 percent this year.
Chesapeake has also faced a funding shortfall estimated at $10 billion this year and has suffered a loss of confidence in its management following Reuters investigations that have drawn the attention of state and federal regulators
The company said it had struck a deal to sell part of its properties in West Texas' Permian basin and expected to sell the rest in the next few weeks.
"A timely transaction at a reasonable price remains vital for the remainder of 2012," Bernstein Research analyst Bob Brackett said in a note to investors.
Shares in Chesapeake were up 4.4 percent to $18.47 in premarket trading.
(Reporting By Matt Daily; editing by John Wallace)
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