Chesapeake Lowers 2015 Capital Budget

Baker Hughes

Chesapeake Energy has reduced its 2015 capital budget to $3.5 billion to $4.0 billion for 2015, which is a $500 million reduction from its previous guidance of $4.0 billion to $4.5 billion.

“We entered 2015 with a strong liquidity position and we intend to manage it prudently,” Doug Lawler, CEO, Chesapeake, said in a statement. “In response to continued weak commodity prices, we are further reducing capital expenditures and associated drilling activity.”

Chesapeake plans to operate 25 to 35 rigs in 2015, which represents a decrease of approximately 55% from an average of 64 rigs in 2014. The company intends to spud and connect to sales approximately 520 and 650 gross operated wells, respectively, in 2015, a decrease from 1,175 and 1,150 wells in 2014. As a result, the company is lowering its targeted 2015 production to 231 million to 236 million barrels of oil equivalent, or average daily production of 635,000 to 645,000 barrels of oil equivalent, which represents 1% to 3% production growth over the prior year after adjusting for 2014 asset sales.

Lawler said that Chesapeake forecasts ending 2015 with approximately $6 billion in combined cash and borrowing capacity under its credit facility.

“With this budget revision we anticipate being free cash flow neutral by the end of 2015,” he said.

Qatar
ADIPEC


Energy Scene with Jason Spiess: Women in Oil & Gas


Highlander Well Production Commences


Always Wear Clean Underwear to Work


Low cost / No cost Marketing in a Gas and Oil Recession


Mtell, MapR Release Mtell Reservoir


Columbia Gulf Submits Cameron Access Application


Innovation & Technology in Oil & Gas – Hughes Rotary Bit 1926


Ace in the Hole


Independence Resources Management Targets Anakarko


Texas LNG Brownsville Seeks NEPA Review


New Partner Joins Saddlehorn


A Tech Shift in Oil & Gas


Three Strategies to Avoid Under Valuation


Innovation & Technology in Oil & Gas – Cable Rigs 1918 to Rotary Rigs 1928


Keystone Pipeline Still Makes Sense


Leadership Urges FERC Action


Outside Sales in a Tough Market: How to Reap the Benefits at a Fraction of the Cost


Senators Urge Oil Exports to Mexico


Sanchez Engages Advisor for Possible Sale


Texas O&G Paid Record Taxes in 2014


Rangeland Energy Secures Anchor Shipper


ABB Advances Oil Field Networking


Jericho Closes OK Acquisition


University Receives Research Funding


BOEM Concludes Lease Sale Offshore LA


Attracting Buyers with Resiliency and Market Share


Solutions for a Tough Market Focus of 2015 Ark-La-Tex Oilfield Expo, April 1-2, 2015 in Shreveport, LA


Chesapeake Lowers 2015 Capital Budget


Principals of Founders Investment Banking Advise Eagle Automation Limited in its Sale to Panhandle Oilfield Services


U.S. Oil Exports Revisited


Interior Department Releases Fracking Rule


OCC Issues Disposal Well Directives


RRC Provides Testimony on Exports


BP Deploys Schlumberger’s Petrel Software


Innovation & Technology in Oil & Gas – Fishtail Bits 1927 to Hughes Rotary Bits 1936


Q & A with Jason Spiess: Lynn Helms


FERC Hears State of the Markets Report


Drilling Wastes: Recovery & Beneficial Reuse


Cruz, Bridenstone Introduce Energy Reform Bill


Houston Pipe Line Receives Presidential Permit

E-Fuels
TAMU