Chesapeake reduces 2015 capital budget to $3.5-4 billion

In response to lingering low oil and gas prices, Oklahoma City independent Chesapeake Energy Corp. has reduced its 2015 capital budget to $3.5-4 billion, which is a $500 million reduction from its previous guidance of $4-4.5 billion (OGJ Online, Feb. 25, 2015).
March 24, 2015

In response to lingering low oil and gas prices, Oklahoma City independent Chesapeake Energy Corp. has reduced its 2015 capital budget to $3.5-4 billion, which is a $500 million reduction from its previous guidance of $4-4.5 billion (OGJ Online, Feb. 25, 2015).

Chesapeake plans to operate 25-35 rigs in 2015, which represents a decrease of 55% from an average of 64 rigs in 2014. The company intends to spud and connect to sales about 520 and 650 gross operated wells, respectively, in 2015.

As a result, the company is lowering its targeted 2015 production to 231-236 million boe, or average production of 635,000-645,000 boe/d, which represents 1-3% production growth over the prior year after adjusting for 2014 asset sales.

About the Author

OGJ editors

Sign up for Oil & Gas Journal Newsletters