Chesapeake had warned that Harvey would impact its business and said on Tuesday it expects current-quarter production to be about 542,000 barrels of oil equivalent per day (boepd), lower than the 638,100 boepd it reported a year earlier.
The company’s forecast was below Wall Street’s estimate of about 550,000 boepd, according to investment bank Tudor, Pickering, Holt & Co.
Shares of Chesapeake, which also trimmed its adjusted production forecast for the full year, were down 1.5 percent at $4.30 in morning trading. The S&P energy index was lower due to a drop in crude oil prices.
Chesapeake, which is selling assets worth $2 billion to $3 billion, said sales completed so far and changes to the way it allocated capital also contributed to the drop in production, but did not give further details.
“We look to the Marcellus or Utica as potential asset sale candidates,” Tudor Pickering said, noting Chesapeake has been focusing on producing oil, rather than natural gas, of late.The rest of this article can be read by clicking here.
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