Chesapeake Energy (CHK) Management Executing Well, Sterne Agee Notes

Chesapeake Energy (NYSE: CHK) is solidly higher Wednesday (+5.8%) following Sterne Agee analyst Tim Rezvan called "strong."

The company posted adjusted EPS of $0.38, $0.05 better than the consensus of $0.33 and $0.03 better than Sterne Agee's estimate of $0.35. 3Q adjusted EBITDA of $1.24 billion exceeded Sterne Agee at $1.24 billion and consensus at $1.22 billion.

"The new management team continues to demonstrate strong execution in its core areas, in addition to cleaning up the balance sheet," Rezvan commented.

He added, "The company's focus on expense reduction was evident both quantitatively, in terms of the lowest all-in unit expense number since 3Q10, and qualitatively with the company announcing sharply lower well costs across all core operating areas. With the $5.4 billion sale of western Marcellus acreage to close this quarter, the balance sheet is close to being fully healed."

Still, Rezvan not a bull on the stock and maintained a Neutral rating.

For an analyst ratings summary and ratings history on Chesapeake Energy click here. For more ratings news on Chesapeake Energy click here.

Shares of Chesapeake Energy closed at $21.29 yesterday.

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