Chesapeake Energy Corp., the third-best performing natural-gas producer this year in the Standard & Poor's 500, said Thursday that third-quarter output rose 7 percent from drilling in U.S. shale deposits.

Average daily production rose to the equivalent of 2.48 billion cubic feet of natural gas, from 2.32 billion cubic feet in the year- earlier quarter, Oklahoma City-based Chesapeake said in a statement.

The figure included 45 million cubic feet of production curtailed by price or pipeline repairs.

Estimated proved reserves fell 4 percent during the quarter to 12 trillion cubic feet because gas prices fell, the company said.

Chesapeake on Oct. 22 reported record daily output from company- operated wells in the Barnett Shale region of Texas, the Haynesville Shale in Louisiana, the Fayetteville Shale in Arkansas and the Marcellus Shale that lies under Pennsylvania and neighboring states.

The announcement was made after the close of regular Wall Street trading. Chesapeake rose $1.27, or 5.1 percent, to $26.04 on the New York Stock Exchange.

Chesapeake is scheduled to release financial results for the third quarter after the close of trading Monday.

Pioneer Natural Resources Co., an Irving, Texas oil and natural- gas producer is the best-performing natural-gas producer in the Standard & Poor's 500.

Originally published by JIM POLSON Bloomberg News.

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