Chesapeake Energy stock was on the rise today after reporting some preliminary data from its fourth quarter of 2018.
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The preliminary data from Chesapeake Energy (NYSE:CHK) has the company providing estimates for barrels of oil equivalent produced per day. The company says that this will range from 462,000 to 464,000 barrels of oil equivalent per day.
Also among the good news for Chesapeake Energy stock is that oil production range for the fourth quarter of 2018 will likely be between 86,000 to 87,000 barrels of oil per day. The company also says that 2018 Powder River Basin net production exit rate for the end of the year was 38,500 barrels of oil equivalent per day.
The company’s expectations for 2019 are also a boon to Chesapeake Energy stock. The company is now expecting Powder River Basin rates to increase in 2019. This could have the annual net production more than doubling what it was in 2018.
Doug Lawler, President and CEO of Chesapeake Energy, has this to say about the company’s plans for 2019.
“We plan to reduce our 2019 capital expenditures by lowering our rig count by approximately 20 percent, expecting to average 14 rigs versus our current rig count of 18. Further, we expect our capital efficiency to improve in 2019 as total net capital per rig line is projected to decrease by 15 to 20 percent compared to 2018. The improvement in our capital efficiency, along with our focus on our high-margin oil investments, should result in higher operating cash flow and stronger margins in 2019 compared to 2018.”
CHK stock was up 13% as of noon Wednesday.
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As of this writing, William White did not hold a position in any of the aforementioned securities.