Oil and gas production company Chesapeake Energy (NYSE:$CHK) saw its stock rise as much as 3% during pre-market trading after it released its second quarter earnings on Thursday, August 3. Chesapeake also estimated a 4% rise in production throughout the rest of 2017. The rise in production will mainly be driven by currently ongoing turn-in-line projects in operating areas like Eagle Ford, Utica, and Powder River Basin, Chesapeake’s CEO Doug Lawler stated. The production rose despite  the company tightening its capital expenditure program with hopes to decrease to 14 rigs by the end of 2017 from the 18 rigs Chesapeake currently operates.

Chesapeake’s revenue in the second quarter was $2.28 billion, an impressive 42% rise year-over-year – revenue was $1.62 in 2016 second quarter. The majority of the overall revenue came from oil and gas revenue, which was $1.28 billion in 2017 second quarter, almost three times more than the $440 million in 2016 second quarter. The rise in oil and gas revenue made up for the fall in marketing revenue. Marketing revenue fell from last year’s $1.18 billion to just $1 billion this quarter. Average analysts’ expectations for oil and gas revenue was $1.05 billion, which the actual earnings report surpassed. However, Chesapeake’s marketing revenue was expected by analysts to be around $1.24 billion, meaning the company did not meet expectations in this area.

In the second quarter, Chesapeake produced an average of 548.3K barrels of oil equivalent (BOE) a day. In July, the company peaked in production by making 90.4K bbl (barrel of 42 gallon oil) per day. Chesapeake’s goal by the end of year is to produce about 100K bbl per day.

Chesapeake’s debt at the end of its second quarter was about $9.7 billion, an improvement from the $10 billion the company saw at the end of 2016. Total liquidity was $3.1 billion in Chesapeake’s second quarter.

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