Chesapeake Stops Drilling in Utica, Marcellus Plays

YOUNGSTOWN, Ohio – Chesapeake Energy Corp. is no longer drilling for oil and natural gas in the Utica and Marcellus shale plays in eastern Ohio and northern Pennsylvania, the company reported today.

In releasing its earnings for the fourth quarter of 2015 and all of 2015, Chesapeake said it averaged just two rigs operating in the Utica during the fourth quarter, and just one rig, on average, in the Marcellus.

“The company has now released all operated rigs” in both shale plays, Chesapeake said.

No indication was given when drilling would resume, if ever.

The Oklahoma City company said it lost $14.86 billion in 2015, with $14.53 billion of that loss attributed to writing down the value of its oil and natural gas properties (READ EARNINGS REPORT).

The company told investors to expect a 5% decline this year in well production and a 50% cut in capital expenditures.

Chesapeake is divesting $700 million in assets and plans to sell as much as $1 billion in assets this year. Nearly 70% of the capital spending the company to do this year will be at existing well sites rather than at new properties, executives said.

CLICK HERE to read transcript of Chesapeake’s conference call this morning with investors.

Copyright 2022 The Business Journal, Youngstown, Ohio.