Chesapeake Energy Corporation (NYSE:CHK) posted operational and financial report for Q3 2017 and other recent developments. Total production reached around 584,000 boe per day on October 30, 2017. The company is on track to meet target of averaging 100,000 barrels of oil a day in Q4 2017.
Doug Lawler, the CEO of Chesapeake, expressed that they continue to improve their cost structure and capital efficiency as they move toward free cash flow neutrality. They have recognized increased productivity across their diverse portfolio through the tenacity of employees and technical innovation and, accordingly, they are expanding their core profile in every operated play.
Lawler stated that on October 30, 2017, total production came at 584,000 boe per day, and they remain on track to hit average 00,000 barrels of oil a day in Q4 2017. As further evidence of Chesapeake progress, they are delighted to report the results of two new wells with better completions in the Upper Marcellus.
Lawler continued that as they look toward 2018, the priorities continue to be unchanged as they focus on further enhancing their balance sheet, moving toward cash flow neutrality and increasing their margins. While they have not reported details pertaining their 2018 capital program, the company will follow a disciplined course that offers the flexibility required to respond to variations in commodity prices.
As of today, Chesapeake expect spending less capital in 2018 as compared to 2017 and, provided company’s industry-leading capital efficiency and asset quality, it can deliver flat to modest manufacturing growth on a lower capital expenditure.
For the 2017 third quarter, the company posted a net loss of $41 million, while the firm’s EBITDA for Q3 2017 was $345 million. Chesapeake’s oil, NGL and natural gas unhedged revenue was almost unchanged year over year irrespective of a 15% decline in volume, mainly led by asset sales.