Oklahoma City independent Chesapeake Energy Corp. reported a budget with plans for total capital expenditures to range $1.9-2.5 billion, including capitalized interest, for 2017. This compares with $1.65-1.75 billion budgeted for 2016.
The company said it is “narrowing its range of projected capital as it gains confidence in market conditions supporting a return to projected production growth in the second half of the year.”
Chesapeake is targeting total production of 194-205 million boe in 2017, or average production of 532,000-562,000 boe/d, representing a decline of 3% to modest growth of 2% vs. 2016, after adjusting for asset sales. Of the 2017 projected total production, about 33-35 million boe is expected to be crude oil, 18-20 million boe to be natural gas liquids, and 860-900 bcf to be natural gas.
Chesapeake plans to operate an average of 17 rigs this year, an increase from an average of 10 rigs in 2016. The company intends to spud and place on production about 400 and 450 gross operated wells in 2017, respectively, compared with 213 and 428 respective wells in 2016.
