Chesapeake Energy Provides 2014 Outlook - Quick Facts

(RTTNews) - Chesapeake Energy Corp. (CHK) announced details of its 2014 Outlook and capital program. Chesapeake budgets total capital expenditures in the range of $5.2 - $5.6 billion in 2014, which represents a 20% reduction from the midpoint of Chesapeake's 2013 capital expenditure Outlook range.

After adjusting for 2013 asset sales, the company expects to generate 8 - 10% year-over-year production growth in 2014, consisting of 8 - 12% oil production growth, 44 - 49% natural gas liquids production growth and 4 - 6% natural gas production growth.

On an absolute basis, Chesapeake targets 2014 production growth of 2 - 4%, which implies an average daily production rate of 680 - 695 thousand barrels of oil equivalent (mboe).

Chesapeake plans to spud approximately 1,100 gross operated wells in 2014, which is relatively unchanged from 2013 activity levels. The company plans to connect approximately 1,300 gross operated wells to sales in 2014, or approximately 115 fewer wells than in 2013.

As a result of ongoing cost control initiatives, Chesapeake anticipates lower per-unit production and general and administrative (G&A) expenses in 2014. Production expenses are expected to range from $4.25 - $4.75 per barrel of oil equivalent (boe), down approximately 10% year over year from the midpoint of Chesapeake's 2013 production expense Outlook range.