Chesapeake Energy Corp (CHK)

[crudeoil24]

Chesapeake To Lower Capital Spending This Year
7:21 am ET January 9, 2019 (Dow Jones) Print
By Micah Maidenberg

Chesapeake Energy Corp. (CHK) expects fourth-quarter production of an average of 462,000 to 464,000 barrels of oil equivalent per day.

The shale-oil driller also said Wednesday it estimates it spent around $545 million in capital expenditures in the quarter.

With its divestment of assets in the Utica shale region in the Northeast and after refinancing debt, the company was able to eliminate $2.6 billion in debt. It has no near-term debt maturities, Chesapeake said.

Asset sales last year generated more than $2 billion in net proceeds, helping the company retire a term loan and other debt, Chesapeake Chief Executive Doug Lawler said in prepared remarks.

The company plans to lower its capital expenditure this year by reducing its rig count by about 20% to an average of 14 rigs. Capital efficiencies are expected to improve, which should permit Chesapeake to generate higher operating cash flows and stronger margins in 2019, Mr. Lawler said.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

January 09, 2019 07:21 ET (12:21 GMT)

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