Chesapeake Energy says weather, closed asset sales hit third-quarter production
Chesapeake Energy Corp. (CHK) said Tuesday disruptive weather, closed asset sales and changes in capital allocation impacted adjusted average 2017 third quarter production. The company said it now expects third-quarter volume of about 542,000 boe a day, up from 527,600 a say in the second quarter. The company is expecting average third-quarter oil production of about 86,000 barrels a day, followed by about 100,000 barrels a day in the fourth quarter. "Last week we averaged approximately 555,000 boe per day and 91,000 barrels of oil per day, and we anticipate our volumes will continue to grow substantially in the 2017 fourth quarter as our current production rate has recovered from the delays noted above," Chief Executive Doug Lawler said in a statement. The company is planning to place 120 to 130 new wells into production in the fourth quarter, mostly in the Eagle Ford and Powder River Basin. "As we enter 2018, we remain focused on reducing our debt and driving toward cash flow neutrality," said Lawler. Shares have fallen 38% in 2017, while the S&P 500 has gained 12%.
-Ciara Linnane; 415-439-6400; AskNewswires@dowjones.com
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