Chesapeake Energy Plans To Reduce 2019 Capital Expenditures

(RTTNews) - Chesapeake Energy Corp. (CHK) said that it plans to reduce its 2019 capital expenditures by lowering its rig count by about 20 percent, expecting to average 14 rigs versus its current rig count of 18.

Further, it expects its capital efficiency to improve in 2019 as total net capital per rig line is projected to decrease by 15 to 20 percent compared to 2018. The improvement in its capital efficiency, along with its focus on high-margin oil investments, should result in higher operating cash flow and stronger margins in 2019 compared to 2018.

It estimates average 2018 fourth quarter production to be approximately 462,000 to 464,000 barrels of oil equivalent (boe) per day.

The Estimated average 2018 fourth quarter oil production will be in a range of approximately 86,000 to 87,000 barrels (bbls) of oil per day; The Estimated 2018 fourth quarter capital expenditures will be approximately $545 million, including $50 million of capitalized interest and Utica investments.