Oklahoma City-based Chesapeake Energy is out with a new business strategies report showing its strategic goals.
The company, in the September 2018 update indicated its goals include better margin enhancement, free cash flow neutrality and an improved net debt to EBITDA ratio.
The new strategy cited another goal is restoring the balance sheet. The company said it intends to apply $1.9 billion net proceeds from the recent Utica asset sale to “debt reduction.”
The company stated it expects up to $150 million in cash interest savings projected for 2019. It also indicated it has more than $7 billion of collateral excluding the Utica assets to support its borrowing base.
Chesapeake is focused on five basins for its oil and gas explorations: the Appalachia North, Powder river, Mid-Continent, South Texas and the Gulf Coast.
The company has 5 active rigs in the Powder River, the basin it calls the “Oil Growth Engine” area of exploration. Three rigs are in the Appalachia North, 2 in the Mid-Continent, 4 in South Texas and 3 in the Gulf Coast basin of Louisiana.
The updated strategic goals report can be read by clicking here.