Utica Shale is Proving Key to Chesapeake's Course Correction
From Seeking Alpha:
The Utica Shale is leading the way for Chesapeake Energy's (CHK)growth. In the third quarter of 2013, production in the Utica shale shot up 91% compared to the previous quarter. With 63 additional wells being connected to pipelines in the third quarter, Chesapeake Energy delivered165 million cubic feet of natural gas equivalent per day. The company drilled 377 wells in the play, of which 169 are producing and 208 wells are still in different stages of completion.
Chesapeake Energy has begun to reap the benefits of infrastructure finally coming online at the Utica Shale, unraveling the play's potential. The game changer for Chesapeake has been the Kensington gas processing plant, which is a joint venture between Access Midstream Partners (ACMP), M3 Midstream, and EV Energy Partners (EVEP). The first phase of this project came online in the third quarter this year. It has a capacity of processing 200 million cubic feet of gas per day. The second phase of the project is scheduled to be completed next month, which will add another 200 million cubic feet of gas processing capacity at the Utica shale. Chesapeake is the leading player in the Utica shale, and its operations there remain the key to the company posting an expected adjusted EBITDA of $5 billion in 2013, a growth of 33% over the previous year.