OKLAHOMA CITY (AP) — Chesapeake Energy posted a 40 percent decline in fourth-quarter net income with the glut of natural gas continuing to subdue prices, but the company easily beat Wall Street expectations and shares edged higher.

Natural gas accounted for 77 percent of its production in the fourth quarter, down from 82 percent a year earlier as it shifts production because of falling prices. It collected $2.07 per thousand cubic feet in the most recent quarter, down from $3.87 a year ago. Those prices include the impact of settled bets on the direction of natural gas prices.