Encouraged by strong oil production results from these two plays, the company raised its overall oil production guidance for the year by 1 million barrels to a range of 37 million to 39 million barrels. Liquids now account for about 24% of Chesapeake’s total production, up significantly from 19% a year ago.
For the remainder of the year, Chesapeake plans to allocate roughly 85% of its drilling completion capital to liquids plays — mainly the Eagle Ford and the Greater Anadarko Basin — despite the recent surge in natural gas prices and the generally bullish outlook for prices over the remainder of the year.
Going forward, it will be interesting to see how Chesapeake Energy Corporation (NYSE:CHK) balances its asset sales strategy with its pledge to ramp up production. To combat its cash flow shortfall for 2013, which the company estimates at $3.5 billion, it plans to raise between $4 billion and $7 billion in asset sale proceeds this year.
The article Chesapeake Boosts Oil Production Target originally appeared on Fool.com and is written by Arjun Sreekumar.
Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool has options on Chesapeake Energy.
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