(By Salman - iStockAnalyst Writer)Chesapeake Energy (NYSE: CHK) is scheduled to release its third quarter earnings after the market close on Monday, November 2, 2009.  Analysts, on average, currently expect the company to report earnings of 65 cents a share on revenue of $1.90 billion. In the year ago quarter, the company reported earnings of $5.61 cents per share (85 cents on an adjusted basis) on revenue of $7.49 billion. Chesapeake Energy is one of the largest independent natural gas companies in the U.S. with proven reserves, in the second quarter ended June 2009, of over 12.52 trillion cubic feet equivalent, of which 92% is natural gas. Natural gas has been touted as the next big fuel, as it burns cleaner, more efficiently, and can be cheaper than oil. The Oklahoma City-based company has expanded by concentrating its capital in just a few geographic regions, allowing the company to gain an in-depth knowledge of the surrounding geology that has kept drilling success rates above 97% since 1991, and at 99% in 2008 and 2009. Chesapeake also aggressively acquires new reserves that it thinks could yield in the future. This combined strategy of drilling and purchasing contributed to reserve replacement growth of 209% in the second quarter of 2009. As of the second quarter of 2009, the company owned interests in 43,300 wells producing oil and natural gas of approximately 2.5 bcfe per day.

Early in August, the company reported that it swung to second-quarter net income of $237 million, or 39 cents a share, compared with a loss of $1.64 billion, or $3.16 a share, in the prior-year quarter. Excluding items, Chesapeake generated adjusted net income to common shareholders of $377 million or $0.62 per share, compared to $485 million or $0.90 per share in the year-earlier quarter. Total revenues for the quarter were $1.67 billion, compared to to negative revenues of $455 million in the year-ago quarter. Analysts, on average, reported earnings of $0.51 per share on revenue of $1.89 billion.

Average sales price, excluding unrealized gains on derivative of natural gas, was $5.56 per thousand cubic feet or mcf in the second quarter, compared to $8.18 per mcf in the year-earlier quarter. Average sales price of oil was $56.72 per barrels of oil and natural gas liquids or bbl, down from $76.96 per bbl in the prior-year quarter. Average sales price of natural gas equivalent was $5.89 per thousand cubic feet of natural gas equivalent or mcfe, compared to $8.55 per mcfe in the corresponding quarter last year. Natural gas production improved to 204.3 billion cubic feet or bcf from 195.0 bcf in the same quarter a year ago. Oil production was 3.152 mbbls, compared to 2,816 mbbls in the year-earlier quarter.