Written on: August 3, 2022 by ICM
Citing an increased market focus on natural gas over heating oil, Chesapeake Energy Corp., Oklahoma City, OK has decided to further invest on its Marcellus and Haynesville, Pennsylvania assets for future growth, which are shale deposits where natural gas is sourced. The company said it will also reduce activity in Eagle Ford, an oil deposit in south Texas, “which the company now views as non-core to its future capital allocation strategy,” the company said in a press release.
“Simply put, we are tightening our strategic focus around our best rock, best operations and lowest emissions footprint to generate the most attractive and sustainable capital returns in the industry and be the leader in answering the call for delivering the affordable, reliable, lower carbon energy the world needs,” said Nick Dell’Osso, Chesapeake’s President & CEO.
Chesapeake currently operates 16 rigs, including five in the Marcellus, five in the Eagle Ford and six in the Haynesville. The company expects to drill 60 to 70 wells and place 40 to 50 wells on production in the third quarter of 2022. Chesapeake plans to drop Eagle Ford to three rigs by the end of August and exit the year with two rigs.
Chesapeake Energy has also entered into gas supply agreement with Golden Pass LNG facilities to deliver 300 mmcf per day of Responsibly Sourced, independently certified gas, from Haynesville to Golden Pass’ liquefied natural gas terminal on the Gulf Coast of Texas. Terms of the deal were not disclosed.