2023-05-03 10:54:41 ET
Chesapeake Energy ( NASDAQ: CHK ) said Wednesday it expects continued volatility in natural gas markets at least through this summer, and that it could hold off bringing some wells online if low prices continue.
Chesapeake ( CHK ) warned it is seeing a pullback in third-party well proposals and that it anticipates a slowdown in non-operated activity.
CEO Nick Dell'Osso said the company continues to hold talks with third parties about selling the rest of Chesapeake's ( CHK ) Eagle Ford assets in south Texas, but that deals for gas assets have become difficult in the weak market.
The company also said it had decided to conduct some maintenance in the Haynesville shale while gas prices are low.
Chesapeake ( CHK ) -2.5% Wednesday despite reporting better than expected Q1 adjusted earnings on higher production of natural gas.
Q1 net production rose 9.4% Y/Y to 4.1B cfe/day, consisting of ~90% natural gas and 10% total liquids, but the company previously said it will drop three drilling rigs in the coming months and cut gas output 4%-6% this year as prices of natural gas futures have plunged.
More on Chesapeake Energy:
- See financial and valuation comparisons to sector peers
- SA analysis: Chesapeake Is Betting On The Haynesville
- Stock price return: 8% loss YTD, 5% loss in the past 12 months
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Chesapeake Energy sees continued natural gas volatility, could cut activity