Chesapeake Energy Corporation Provides 2017 Third Quarter Update

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The FINANCIAL — Chesapeake Energy Corporation on September 26 provided an update on its 2017 third quarter operational results and revisions to its 2017 full-year guidance. Highlights include:

Disruptive weather, closed asset sales and changes in capital allocation result in adjusted average 2017 third quarter production estimate of approximately 542,000 boe per day, higher sequentially compared to 527,600 boe in the 2017 second quarter

Average 2017 third quarter oil production estimate of 86,000 barrels per day

With delays largely mitigated, Chesapeake expects 2017 fourth quarter oil production to average approximately 100,000 barrels of oil per day

Doug Lawler, Chesapeake’s Chief Executive Officer, commented, “As a result of operational delays and curtailments due to disruptions caused by Hurricane Harvey, closed asset sales and capital allocation adjustments, we are forecasting our 2017 third quarter volumes to be approximately 542,000 boe per day, including approximately 86,000 barrels of oil per day, compared to total production for the 2017 second quarter of approximately 527,600 boe per day, including approximately 88,400 barrels of oil per day. We expect these impacts to be limited to the third quarter, but are revising our guidance for the full year. 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. We plan to place 120 to 130 new wells into production in the 2017 fourth quarter, primarily in the Eagle Ford and Powder River Basin. Accordingly, we now project that our oil volumes will average approximately 100,000 barrels per day for the 2017 fourth quarter.”

Lawler continued, “As we enter 2018, we remain focused on reducing our debt and driving toward cash flow neutrality. We will continue to take all of the appropriate steps to retain a disciplined pace of activity, while creating the most value from the capital efficiencies we are seeing throughout our operations.”

 

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