Chesapeake Energy Releases 2014 Results; Earnings Down 60%

By -
From a Chesapeake Energy news release:

OKLAHOMA CITY--(BUSINESS WIRE)--Feb. 25, 2015-- Chesapeake Energy Corporation (NYSE:CHK) today reported financial and operational results for the 2014 full year and fourth quarter and announced details of its 2015 Outlook and capital expenditure program. Highlights include:
  • 2014 adjusted net income of $1.49 per fully diluted share and 2014 adjusted ebitda of $4.945 billion
  • Average 2014 production of approximately 706,000 boe per day, an increase of 9% year over year, adjusted for asset sales
  • Planned 2015 total capital expenditures ranging from $4.0 to $4.5 billion
  • Projected 2015 production growth of 3 – 5%, adjusted for asset sales
Doug Lawler, Chesapeake’s Chief Executive Officer, said, “2014 was a year of accomplishments for Chesapeake. Because of these accomplishments and the progress we have made as a company in 2014, Chesapeake is well positioned to remain strong and flexible in 2015. We have taken and continue to take appropriate steps not only to weather the current difficult commodity price environment we face today, but to thrive in it. Chesapeake became a much stronger company in 2014, and we are looking forward to becoming even stronger in 2015.” 
2015 Capital Program and Production Outlook 
Chesapeake is budgeting total capital expenditures (including capitalized interest) of $4.0 – $4.5 billion for 2015. Using the midpoint of the range, this represents a 26% reduction from the company's 2014 capital expenditures before acquisitions of $5.8 billion, and a 37% reduction from the company’s 2014 total capital expenditures of approximately $6.7 billion (reconciled in the "Capital Spending and Cost Overview" section below). The company is targeting 2015 production of 235 – 240 million barrels of oil equivalent (mmboe), or average daily production of 645 – 655 thousand barrels of oil equivalent (mboe), which represents 3 – 5% production growth after adjusting for 2014 asset sales. Of the 2015 projected production, approximately 39 – 40 mmboe is estimated to be crude oil, 1,035 – 1,055 billion cubic feet (bcf) natural gas and 23 – 24 mmboe natural gas liquids (NGL). 
Chesapeake plans to operate 35 – 45 rigs in 2015, which represents the company's lowest operated rig activity level since 2004 and a decrease of approximately 38% (using the midpoint of the range) from an average of 64 rigs in 2014. The company intends to spud approximately 790 gross operated wells and connect to sales approximately 800 gross operated wells in 2015, a decrease from approximately 1,175 and 1,150 wells, respectively, in 2014. The table below compares the capital and rig counts allocated to the company’s operating areas for 2015 and 2014:

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be a whole lot of film editing going on there to fi
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividend on closing the deal while offering a quarterly variable div
Read more

Is a Strong Oil Demand Expected This Year?

By -
Image
  According to the world's largest oil traders, global oil demand is set for a rebound. Between now and the end of 2022, global consumption is expected to increase by up to 8 million barrels each day. Vitol Group, the world's largest oil trader, supports this statement.  In an interview with Bloomberg, Vitol's chief executive Russell Hardy said, "We'll need all eight cylinders to get through 2022". This, of course, is due to the lower than average demand for oil at the moment. Reopening economies and Asian markets will create a strong demand rebound by the end of this year and in 2022.  Although the demand for jet fuel will slowly increase, it will still be below average at the end of the year. Nevertheless, a surge in petrochemicals will offset the expected delay in jet fuel demand. Last year, the oil surplus reached a record of 1 billion barrels. This excess is already more than halfway drained, and experts believe it will be depleted by the third quarter th
Read more