Chesapeake 1Q13: Marcellus Production Hits 2 Bcf/d, 14 Utica Rigs

Chesapeake Energy released their first quarter 2013 financial and operational update yesterday. The big news, for MDN readers, is that Chesapeake has now hit 2 billion cubic feet of production per day (Bcf/d) from their Marcellus Shale acreage. That’s a huge milestone. They also are still gung ho on the Utica Shale operating 14 drilling rigs in the Utica, and say they’re just waiting for infrastructure (pipelines and processing plants) to catch up and then production will take off for the Utica.

Revenue for the company is up by 35% to $1.1 billion in 1Q13, although what’s left over for common shareholders was a pitiful $15 million (2 cents per share). Still, the numbers overall are looking much better, and new Chesapeake CEO Steve Dixon says the company is on track to sell off another $4-$7 billion in assets this year in their attempt to reduce the high debt load.

Below are select portions of the Chesapeake 1Q13 update, with MDN comments sprinkled in to provide context…

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