UPDATE 1-Chesapeake Energy 3rd-quarter profit off 34 pct

(Recasts first paragraph; adds production figure, outlook, closing stock price)

HOUSTON, Nov 6 (Reuters) - Chesapeake Energy Corp (CHK.N: Quote, Profile, Research, Stock Buzz) on Tuesday reported a 34 percent decline in third-quarter earnings as natural gas prices fell from a year-ago and offset a jump in production.

Net income available to common shareholders in the quarter fell to $346 million, or 72 cents per diluted share, from $523 million, or $1.13 per share, in the year-ago quarter.

Excluding a one-time gain related to hedging, adjusted net income was 69 cents per share.

Analysts surveyed by Reuters Estimates on average had expected a profit of 61 cents a share.

Average daily production for the Oklahoma City company climbed 27 percent to 2.03 billion cubic feet of natural gas equivalent (bcfe).

The company said its average realized price for natural gas fell to $7.41 per thousand cubic feet (mcf) from $8.39/mcf in the same quarter a year earlier.

Citing better-than-expected results from the company's drilling program, Chesapeake raised its prior forecast for total 2007 production growth to 21 percent to 23 percent from 18 percent to 22 percent.

For 2008, Chesapeake said it now sees production growth of 18 percent to 22 percent, up from its prior growth forecast of 14 percent to 18 percent.