Chesapeake Energy 3Q16: Revenue & Production Down, Lost $1.2B

Chesapeake EnergyChesapeake Energy released it’s third quarter 2016 update yesterday. Revenues were down 33% year over year. Production for all forms of hydrocarbons the company extracts–oil, natural gas and natural gas liquids, expressed as million barrels of oil equivalent or MMboe–was down 2 MMboe (around 3%). The company lost $1.2 billion in 3Q16–a marked improvement over losing $4.6 billion in 3Q15. Most of the loss was a paper loss (write-downs for impairments) and not out-of-pocket money. Chesapeake remains one of the largest producers in the Marcellus/Utica region, with a combined production in the two plays of 261 thousand barrels of oil equivalent (~1.5 million cubic feet per day of natural gas). One thing stands out in the 3Q16 update: Chesapeake’s renewed/big push in the Haynesville. The company operated an average of 11 rigs in 3Q16 (down from 18 in 3Q15), drilling 63 wells (down from 81 in 3Q15) and completing 80 wells (down from 84 in 3Q15). They connected 105 wells to pipelines for production in 3Q16 (down from 112 in 3Q15). All of those numbers are cumulative across all shale plays. Unfortunately Chesapeake doesn’t break out any of their numbers by individual shale play. They remain the biggest driller in the Ohio Utica. Here’s the update…

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