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Released November 07, 2013 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Oil & Gas producer Chesapeake Energy (NYSE:CHK) (Oklahoma City, Oklahoma) recently reported a third-quarter revenue of more than $4.8 billion, up significantly from almost $3 billion in third-quarter 2012. Natural gas sales brought in $624 million, oil sales $819 million and NGL sales $143 million, all increases from 2012.
Industrial Info is tracking many of Chesapeake's plants throughout the U.S., including crude oil production plants, such as the Crude Oil Central Production plant in Olmito, Texas; natural gas compressor stations, such as the Kermit Natural Gas Compressor Station in Kermit, West Virginia; and shale leases, such as the Haughton Haynesville Shale lease in Louisiana.
"We are pleased with our operational performance during the third quarter," said Doug Lawler, chief executive officer of Chesapeake, in a press release. "Our strong results compared to 2012's third quarter were driven by a substantial increase in oil and natural gas liquids production, higher realized natural gas prices, and significantly lower per-unit production, overhead and [depreciation, depletion and amortization] expenses... I am particularly impressed by the strong performance of the company while we implemented significant transformational initiatives over the past few months. We look forward to achieving further efficiency gains and improvements in returns on capital in 2014."
Daily production in the third quarter increased overall when compared with 2012. Oil production increased 23% to 120,000 barrels per day; NGL production increased 31%; while natural gas production decreased 10%. Liquids accounted for 21% of total production in 2012, and grew to 27% in 2013.
The Eagle Ford Shale, the most productive shale for Chesapeake, averaged 95,000 barrels per day on an average of 13 rigs. Currently, Chesapeake has 788 producing wells in the Eagle Ford, and 117 wells pending production.
"Our oil assets in the Eagle Ford Shale continue to deliver strong results, prompting us to raise our full-year 2013 oil production guidance by 2 million barrels, to 40 million to 42 million barrels," Lawler said.
The Utica Shale averaged 164 million cubic feet of natural gas equivalent daily from 11 rigs. A total of 169 wells are producing in the Utica, with an additional 208 in various stages of development.
In the Greater Anadarko Basin, 44 wells are awaiting completion and 89 were operational in the third quarter. The basin saw 196,000 barrels per day on average from five plays: the Mississippi Lime, Granite Wash, Cleveland, Tonkawa and Hogshooter.
The Northern Marcellus Shale produced an average of 1,900 million cubic feet of equivalent per day from five rigs, while the Southern Marcellus produced an average of 470 million cubic feet per day from three rigs. There are 128 wells in the Northern shale and 62 wells in the Southern shale awaiting completion.
"Although we have reduced our drilling and completion activities in the second half of 2013 and we are planning for a lower capital-expenditure budget next year, we expect to continue delivering organic production growth in 2014," Lawler said. "We anticipate our growth will be led by an increase in oil production from the Eagle Ford Shale and an increase in natural gas and NGL production from the Utica and Marcellus shales, which will benefit from new gas processing and pipeline takeaway."
For more information, visit Industrial Info's Oil & Gas Production Database.
View Plant Profile - 1078436 1042505 3089405
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking many of Chesapeake's plants throughout the U.S., including crude oil production plants, such as the Crude Oil Central Production plant in Olmito, Texas; natural gas compressor stations, such as the Kermit Natural Gas Compressor Station in Kermit, West Virginia; and shale leases, such as the Haughton Haynesville Shale lease in Louisiana.
"We are pleased with our operational performance during the third quarter," said Doug Lawler, chief executive officer of Chesapeake, in a press release. "Our strong results compared to 2012's third quarter were driven by a substantial increase in oil and natural gas liquids production, higher realized natural gas prices, and significantly lower per-unit production, overhead and [depreciation, depletion and amortization] expenses... I am particularly impressed by the strong performance of the company while we implemented significant transformational initiatives over the past few months. We look forward to achieving further efficiency gains and improvements in returns on capital in 2014."
Daily production in the third quarter increased overall when compared with 2012. Oil production increased 23% to 120,000 barrels per day; NGL production increased 31%; while natural gas production decreased 10%. Liquids accounted for 21% of total production in 2012, and grew to 27% in 2013.
The Eagle Ford Shale, the most productive shale for Chesapeake, averaged 95,000 barrels per day on an average of 13 rigs. Currently, Chesapeake has 788 producing wells in the Eagle Ford, and 117 wells pending production.
"Our oil assets in the Eagle Ford Shale continue to deliver strong results, prompting us to raise our full-year 2013 oil production guidance by 2 million barrels, to 40 million to 42 million barrels," Lawler said.
The Utica Shale averaged 164 million cubic feet of natural gas equivalent daily from 11 rigs. A total of 169 wells are producing in the Utica, with an additional 208 in various stages of development.
In the Greater Anadarko Basin, 44 wells are awaiting completion and 89 were operational in the third quarter. The basin saw 196,000 barrels per day on average from five plays: the Mississippi Lime, Granite Wash, Cleveland, Tonkawa and Hogshooter.
The Northern Marcellus Shale produced an average of 1,900 million cubic feet of equivalent per day from five rigs, while the Southern Marcellus produced an average of 470 million cubic feet per day from three rigs. There are 128 wells in the Northern shale and 62 wells in the Southern shale awaiting completion.
"Although we have reduced our drilling and completion activities in the second half of 2013 and we are planning for a lower capital-expenditure budget next year, we expect to continue delivering organic production growth in 2014," Lawler said. "We anticipate our growth will be led by an increase in oil production from the Eagle Ford Shale and an increase in natural gas and NGL production from the Utica and Marcellus shales, which will benefit from new gas processing and pipeline takeaway."
For more information, visit Industrial Info's Oil & Gas Production Database.
View Plant Profile - 1078436 1042505 3089405
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and nine international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
