Nov. 3--Chesapeake Energy Corp. on Monday reported increased production of oil and natural gas in the third quarter, but the company's net income dropped because of falling gas prices.

Chesapeake's net income was $186 million, down from almost $3.3 billion for the same quarter in 2008. That's 30 cents per share compared with $5.62 for the same period a year ago.

Discounting charges, Chesapeake said it made $440 million, or 70 cents per share in the third quarter. Chesapeake made an adjusted profit of $486 million, or 85 cents, in last year's third quarter.

Chesapeake produced an average of 2.483 billion cubic feet of natural gas equivalent for the quarter. Gas accounts for 92 percent of that production.

That production figure is a 7 percent increase over the same period last year, despite voluntary production curtailments because of low gas prices.

Company officials expect production to continue increasing, projecting up to 6 percent growth for 2009, as much as 10 percent in 2010 and up to 14 percent in 2011.

The forecast is largely the result of new technologies that allow energy companies to reach into pockets that were out of reach before due to cost.

The results were released after the stock market closed Monday. Chesapeake shares fell 14 cents to $23.98 in after-hours trading, after falling 36 cents during the regular session. The shares have traded between $9.84 and $30 during the past year.

Contributing: The Associated Press

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