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Chesapeake Looks To Rein In Costs, Market Its Marcellus Assets

Reuters/Steve Sisney/Landov

Chesapeake Energy Corporation's 50 acre campus in Oklahoma City, Oklahoma.

The nation’s second-largest natural gas producer, Chesapeake Energy Corp., is trying to reassure investors it can rein in costs and cover a budget shortfall.

According to Reuters, the company will market acreage in the Marcellus region, in order to focus more on its core drilling operations in Texas:

Investors took control of the Chesapeake board in June. Reining in spending is now a top priority for the company, which faces a gap of about $4 billion this year between its expected cash flow and capital expenditures.

To help cover that shortfall, Chesapeake has pledged to sell up to $7 billion in oil and gas properties this year. So far, it has closed or signed deals totaling $1.5 billion, Dixon said, adding that there has been good interest in some of the company’s smaller asset packages.

Chesapeake has appointed a new interim CEO, Steve Dixon, to lead the company while it searches for a permanent replacement.

The company’s previous CEO,  Aubrey McClendon, stepped down April 1. He is being formally investigated by the Securities and Exchange Commission for a controversial financial perk that allowed him to personally invest in the company’s oil and gas wells.

StateImpact reporters in Texas, Oklahoma, and Pennsylvania teamed up to explain more about Chesapeake’s financial troubles and McClendon’s controversial role at the company last spring.

 

Comments

  • http://twitter.com/realsteveeboy steveeboy

    any word on when they will be compensating the families in Leroy, PA whose water and property they destroyed with their faulty fracking operations at the Morse Well ? https://stateimpact.npr.org/pennsylvania/2012/07/30/in-northeast-pennsylvania-methane-migration-means-flammable-puddles-and-30-foot-geysers/

    • http://www.facebook.com/people/Mike-George/1086850688 Mike George

      never

    • hooker

      not gonna happen as you can read the company in trouble to the tune of 5-6 billion, so don’t look for it, I’d say they pay enough at 40% tax rate when no-energy corps like apple pay only 25%, greed it’s funny how so many complain that oil companys are greedy when they them selves are 3 times as greedy

  • http://www.facebook.com/lindsay.groves.10 Lindsay Groves

    When China owns the whole thing, they’ll be happy to pay those medical bills?

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