By Jack MoneyBusiness writerjmoney@oklahoman.comChesapeake Energy Corp. officials said Wednesday the company nudged oil production higher and held costs in check during the final quarter of the year. In an update issued before markets opened, Chesapeake estimated its oil production during the period climbed to between 125,000 and 126,000 barrels per day. That marked a 6% increase, year over year, and officials attributed much of the increase to work carried out to boost average oil production from wells the company drilled in its Brazos Valley area of the Eagle Ford Shale field by about 40%. In the final quarter of the year, the area’s production grew to about 56,000 barrels of oil equivalent per day, with 40,000 barrels of that being oil. Chesapeake accomplished those gains, officials said, while slashing average lateral-foot well costs by about 9%, seeing about $54 million in drilling and completions savings, year over year. The company placed 81 wells on production in 2019 from the play, and estimates that cost savings and operational improvements boosted its cash flow value by about $250 million for the year. It also provided updates on production gains it accomplished involving other Eagle Ford Shale field wells in south Texas and ongoing operations it has in the Powder River Basin of Wyoming and the Marcellus Shale field in Pennsylvania. The update estimated Chesapeake’s total fourth-quarter production was between 476,000 to 478,000 oil equivalent barrels per day. "We delivered strong cash flow during the quarter on lower costs and higher oil volumes,” Doug Lawler, Chesapeake's CEO, stated in the update. “Natural gas and natural gas liquids volumes were sequentially lower, due to our decisions to direct capital to the highest-margin opportunities in our portfolio, enhancing our profitability.” The company stated as part of its update that its fourth-quarter capital expenditures were between $480 million and $490 million. Chesapeake reduced gathering, processing and transportation and general and administrative expenses by about $1.20 per equivalent barrel, or more than $335 million, in 2019 compared to the previous year. Officials also updated Chesapeake’s ongoing efforts to maintain its liquidity by improving its balance sheet. Wednesday's update noted how Chesapeake cut about $900 million in debt in December through a series of deals that, among other things, addressed Brazos Valley Longhorn debt it had acquired along with WildHorse Resource Development Corp.
Chesapeake Energy Outlines Fourth-quarter Oil Production Gain And Cost Decline
NewsOK.com RSS - business >> !The Oklahoman, Daily Oklahoman: Business
Wed, 01/29/2020 - 4:11am
Topics: jack moneybusiness texas powder river basin wyoming marcellus shale pennsylvania doug lawler chesapeake's ceo natural officials brazos valley longhorn wildhorse resource development newsok corp brazos valley eagle ford shale chesapeake fourth-quarter cost oil production production gain year million update company barrels day equivalent field wells debt flow final ongoing estimated wednesday higher increase accomplished savings stated volumes gas average area cash gains capital
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