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Chesapeake Boosts Income, Gas Production in Utica
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OKLAHOMA CITY -- Chesapeake Energy Corp. today reported adjusted net income available to common stockholders of $282 million or 43 cents per fully diluted share. This compares to adjusted net income of $35 million, or 10 cents per fully diluted share, for the third quarter of 2012.
Among its operating highlights, Chesapeake cited a 23% increase in net daily oil production during the quarter, up to 120,000 million barrels. The outlook for full-year oil production is potentially 42 million barrels, a 34% increase compared to 2012.
Said Doug Lawler, Chesapeake’s CEO, in a prepared statement, "We are pleased with our operational performance during the third quarter. Our strong results compared to the 2012 third quarter were driven by a substantial increase in oil and natural gas liquids production, higher realized natural gas prices and significantly lower per-unit production and overhead expenses. Additionally, our focus on financial discipline and operational efficiencies generated lower-than-expected capital expenditures during the 2013 third quarter, and we have reduced our full-year 2013 capital spending outlook accordingly.”
Regarding exploration in the Utica shale play in Ohio, Chesapeake said net production averaged approximately 164 million cubic feet of natural gas equivalent (mmcfe) per day (312 gross operated mmcfe per day) during the third quarter, an increase of 91% sequentially from the 2013 second quarter.
During the third quarter, Chesapeake said it operated an average of 11 rigs and connected 63 gross wells to sales, compared to 12 average operated rigs and 42 gross wells connected to sales during the second quarter. The average peak daily production rate of the 63 wells that commenced first production in the Utica during the third quarter was approximately 6.6 mmcfe per day.
As of Sept. 30, Chesapeake had drilled a total of 377 wells in the Utica, which included 169 producing wells and 208 wells waiting on pipeline connection or in various stages of completion.
Published by The Business Journal, Youngstown, Ohio.
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