Chesapeake Energy Corp (CHK)

[dwms07]

Some CHK investors are confused including me!

Is Chesapeake a gas play or an oil play? You tell me! This what they posted on page 42 of 1Q16 report

Our Current Quarter production of 61 mmboe consisted of 9 mmbbls of oil (14% on an oil equivalent basis), 276 bcf of natural gas (75% on an oil equivalent basis), and 6 mmbbls of NGL (11% on an oil equivalent basis). Our daily production for the Current Quarter averaged approximately 672 mboe, a decrease of 2% from the Prior Quarter. Compared to the Prior Quarter, average daily oil production decreased by 21%, or approximately 26 mbbls per day; average daily natural gas production increased by 4%, or approximately 105 mmcf per day; and average daily NGL production decreased by 7%, or approximately 5 mbbls per day. Our oil and NGL production decreased primarily as a result of the sale of
certain of our Cleveland and Tonkawa assets in 2015 and a significant reduction in drilling activity. Adjusted for asset sales, our total daily production increased 1% in the Current Quarter compared to the Prior Quarter. Our oil, natural gas and NGL revenues (excluding gains or losses on oil and natural gas derivatives) decreased approximately $570 million to $812 million in the Current Quarter compared to $1.382 billion in the Prior Quarter, primarily due to significant decreases in the prices received for oil, natural gas and NGL sold.


If I read the above correctly, only 14% of their production is oil!

On page 50 they say 69% of their revenue was from NG and NGL. Only 31% of revenue was from oil. But what about profits? I've read repeatedly that CHK made 83% of its profits from NG and NGL, but I cannot find the articles from which this info came! Of course, these were during profitable years so the numbers will certainly be different during losses and down markets.

The person that says I don't know what I am talking about states differently. He even says he statement is proven but he shows no proof!

I continue to say that Chesapeake is primarily a natgas and natgas liquids play. The ratio of oil and gas production averages 83% NG and NGL year over year and 17% crude.

Readers are encouraged to do their own research! Is Chesapeake an oil or gas play?