Chesapeake Energy Increases Oil Production Forecast for 2021 by 1 Million Barrels
Nov. 3 (Reuters) – Shale producer Chesapeake Energy Corp (CHK.O) said on Wednesday it was raising its forecast for total oil production for 2021 to between 24.5 million and 26.5 million barrels, a jump of 1 million barrels compared to previous forecasts.
The rise in production is largely the result of lower base production, the company said.
Chesapeake shares rose about 0.66% at midday to $ 65.80. Benchmark US crude futures were down about 3.5% to $ 81 a barrel.
Chesapeake, based in Oklahoma City, Oklahoma, said he plans to operate one to three rigs in South Texas next year and two to three rigs in Appalachia, according to a presentation. . The company will operate five to six platforms active in its Gulf Coast operations, the company said.
Rival Devon Energy (DVN.N) production volumes in the third quarter also exceeded expectations by 5%, the company said this week. Both Chesapeake and Devon have said they are able to increase production without increasing spending, heeding calls from investors to focus on yields rather than growing production.
Devon executives warned that the industry will continue to face rising prices for goods and services and that it has built around 10-15% inflation into its financial plans for its exploration and mining operations. production.
Devon shares rose about 0.93% to $ 42.37 on Wednesday.
Reporting by Liz Hampton in Denver Editing by Chris Reese
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