Chesapeake publishes billion dollar losses

Oklahoma City-based Chesapeake Energy reported a net loss of $14.69 billion for 2015, according to a Wednesday release.

For the full year, the net loss reported for common stockholders was $22.43 per share. The company averaged 679,200 barrels of oil equivalent in 2015, according to the release.

For the fourth quarter of 2015, Chesapeake reported a loss of almost $2.19 billion, or $3.36 per share, according to the release.

"In light of the challenging commodity price environment, our focus for 2016 is to improve our liquidity, further reduce our cost structure and address our near-term debt maturities to strengthen our balance sheet," said Doug Lawler, Chesapeake's chief executive officer, in a release. "Our tactical focus areas remain asset divestitures, of which we are pleased to have approximately $500 million in net proceeds closed or under signed sales agreements, liability management and open market purchases of our bonds."

Lawler said the company will renegotiate contracts for gathering, transportation and processing to help better align them with the company's current development plans and market conditions.

"We have set our initial capital program for the year at $1.3 to $1.8 billion, including capitalized interest, and will remain flexible to raise or lower based on commodity prices," Lawler said in a written statement.

Including capitalized interest, Chesapeake is budgeting $1.3 to $1.8 billion for its total capital expenditures for 2016. According to the release, the cut represents a 57 percent reduction from 2015 expenditures of $3.6 billion.

"As a result, Chesapeake's planned 2016 capital program will be dedicated to more completions and less drilling, with total completion spending representing approximately 70 percent of the company's total drilling and completion program," according to the release.

The release states Chesapeake made "significant debt reductions" in 2015, reducing total principal debt balances from the 2014 year-end balance of $11.8 billion to the 2015 year-end balance of $9.7 billion.

In regard to local wells, Chesapeake's STACK completed three wells targeting the Meramec formation and the company recently drilled two Oswego wells that should post results in the second quarter, according to the release.

The company also operates one rig in the Mississippian Lime formation, which posted a net production average of 29 mboe per day during the fourth quarter of 2015, according to the release.

In September 2015, Chesapeake laid off 740 workers, including 21 based in Waynoka, after the company reported a second-quarter loss of $4 billion in August.

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