Chesapeake Energy Corp. (NYSE: CHK) reported first-quarter 2014 earnings before markets opened Wednesday. The oil and gas exploration and production company posted adjusted diluted earnings per share (EPS) of $0.59 on revenues of $5.05 billion. In the same period a year ago, the company reported adjusted EPS of $0.30 on revenues of $3.42 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.48 and $4.45 billion in revenues.

In the first quarter, total oil production increased about 6.5% year-over-year and decreased by about 3% sequentially. Natural gas liquids (NGL) production increased 55% year-over-year and 29% sequentially, and natural gas production decreased 4.8% year-over-year and 4% sequentially. The unusually cold weather sliced about 7,600 barrels a day from the quarter’s total liquids production.

The big improvement came as a result primarily of higher natural gas prices, higher production of NGLs and lower costs and expenses. Oil prices were $4.50 a barrel lower sequentially and $9.77 lower year-over-year. As a percentage of production, oil fell to 16% and natural gas fell to 71%, while NGL production rose to 13%.

During the first quarter, Chesapeake received $520 million of net proceeds from asset sales. In April the company received $362 million on the closing of another previously announced sale, bringing the year-to-date total for asset sale proceeds to more than $925 million. Chesapeake sold off $4.4 billion in assets in 2013.

The company’s CEO said:

We are raising our 2014 total production growth outlook on an adjusted basis to 9 – 12% to reflect higher-than-expected natural gas liquids volumes. Additionally, we are raising the midpoint of our 2014 operating cash flow outlook by $700 million, or 13%, due primarily to our increased production outlook, better-than-expected first quarter cash flow and an increase in our benchmark commodity price assumptions for the full year.

Chesapeake issued its 2014 outlook on February 6 and did not offer more detailed guidance Wednesday morning. The company’s investor day presentation is scheduled for next week. The consensus estimates call for second-quarter EPS of $0.45 on revenues of $4.77 billion. The full-year estimates call for EPS of $1.94 and revenues of $19.21 billion.

Chesapeake shares traded up more than 3% in the premarket, at $29.20 in a 52-week range of $19.12 to $29.48. The consensus target price for the shares was around $28.20 before this report.

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