What came out of Chesapeake Energy’s recent fourth quarter financial results and subsequent conference call by leadership was how the company is re-emphasizing natural gas production rather than oil.
Chesapeake Energy, at one time in its history was something of a king of natural gas production, then several years ago decided to make a push for more oil drilling.
But the company’s recent $4.8 billion in acquisitions expanding its targeted areas in the natural gas-rich areas of Appalachia and the U.S. Gulf coast shows clearly where the firm wants to go.
Chief executive Nick Dell’Osso made it clear during last week’s conference call and also that the company wants to become more involved in sending more of its gas overseas as LNG. He told reporters and investors that Chesapeake might also take advantage should pipeline capacity out of the Marcellus shale allow it to do so.
The increase in natural gas prices has Chesapeake leaders wanting to take advantage of their edge in gas production. The company said it will increase oil and gas output to 670,000-690,000 barrels a day of oil equivalent. That would amount to a 47% increase from its output in 2021.
Chesapeake’s gas output could approach 3.65 Mcf a day or nearly 92% of its total, which represents a considerable increase from the 2.2 Bcf/d in 2021. In the fourth quarter, gas represented nearly 82% of Chesapeake’s output.