Chesapeake Energy Corp (NYSE:CHK) said it has been forced to lower its expectations for production in the third quarter, blaming it on disruptive weather, closed asset sales and changes in capital allocation.
In a trading update, the company, which cut its production target by 15%, now expects third-quarter volume of about 542,000 barrels of oil equivalent a day, up from 527,600 a day in the second quarter but down from the 638,1000 a day recorded a year earlier.
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Chesapeak said it is expecting average third-quarter oil production of about 86,000 barrels a day, followed by about 100,000 barrels a day in the fourth quarter.
Focus on cutting debt and cash flow neutrality
"Last week we averaged approximately 555,000 boe per day and 91,000 barrels of oil per day, and we anticipate our volumes will continue to grow substantially in the 2017 fourth quarter as our current production rate has recovered from the delays noted above," chief executive Doug Lawler said in a statement.
The natural gas producer plans to place 120 to 130 new wells into production in the fourth quarter, mostly in the Eagle Ford and Powder River Basin.
"As we enter 2018, we remain focused on reducing our debt and driving toward cash flow neutrality," said Lawler.
Shares added 0.69% to US$4.40 each.on the day.