Chesapeake has lowered its capital budget by $500 million to $3.5–$4.0 billion (including capitalized interest of $500 million) from its earlier guidance of $4.0–$4.5 billion.
In 2015, the company intends to operate 25–35 rigs, down approximately 55% from an average of 64 rigs employed in 2014. Chesapeake plans to spud and connect to sales about 520 and 650 gross operated wells, respectively in 2015. This represents a massive decline from 1,175 and 1,150 wells, respectively in 2014.
the ONLY reason they pumped so much last year is because the price got as high as $6.5 and companies hedged. Now the Rigs are dropping precipitously, the demand is thru the roof, and the exports are about to commence. Yes, get ready for another crisis....
and this are the same criminals that keep telling us about how more efficient the Rigs have become and also dropped the predicted NG price by over 20% in two months.
The only reason the Wall Street Criminals are listening to these fools right now is because they are still making money shorting NG.
The Wall Street Criminals are setting us up for yet another crisis, and the moronic EIA agency is allowing that to happen. incredible
the Rig count is a leading indicator, and in few months we will see the damage done to this industry by the precipitous drop in the rig count. For now, trading between $2.6 and $2.9 is the only thing that makes sense.
and the experts are calling for an injection on Thursday. also, accuweather for NY predicts just one day above average during the next two weeks...so more injections ahead :-)
everything I've read so far: huge demand, lowered production, stockpiles well below average, super low rig count, etc,etc, tell me that NG should be trading much higher than $2.7, but reality is 29 to 1 leveraged paper money can do miracles.
and not even close to where EIA said they will end up....well, I'm definitely not surprised by that...
I'm not sure about the $6 call so I will continue to play the $2.6 to $2.9 trading range
no rigs, no wells, no NG.
and the demand is huge and storage is down 13%. like i said before, when there is no more money to be made on the short side this thing will explode. for now, trade it....
rigs down huge to just 268, XOM to cut production by 2% and demand up from the newly converted power plants.
and you don't know what to do at $2.8?
and I think it will pop and possibly not see the $2 handle this year again.
EIA in their STEO just noticed the huge demand from the newly converted power plants. imo, to satisfy that demand and the LNG exports demand (not yet noticed by EIA) you will need NG at $4+
today could be the turning point. we shall see...
I have a feeling that this summer Texas (#1 consumer) and Florida will be using the A/C a lot and I very much doubt the injections we saw last year at $4.5+ will not be duplicated this year.
New demand from the newly converted power plants, the LNG exports, and the dormant rigs will make the NG price move up during the summer.
how ridiculous is that? not at all, according to EIA!
they see production up and prices down 20%. incredible and what is even more incredible is that we are paying these bureaucrats millions to fabricate the numbers
we shall see, there have been many false starts in the past