Chesapeake Energy Corporation (CHK): The Company is Still Optimistic About the Utica

For instance, Devon Energy’s Chumney Family Trust IH well in Guernsey County reported 448 bbl/day, and 1,203 Mcf/day. Gulfport Energy’s Groh 12H well, also in Guernsey County, produced 1,816 bbl/day and 2,800 Mcf/day.

Anadarko’s Spencer 5H, in Guernsey County, posted 415 bbl/day and 406 Mcf/day, while its Brookfield 3H well, in Noble County, produced 598 bbl/day and 785 Mcf/day. And CONSOL Energy’s Troyer 3H well in Tuscarawas County reported 400 bbl/day.

Easing infrastructure constraints to fuel further growth
Going forward, Chesapeake Energy Corporation (NYSE:CHK) expects stronger production growth in the play, as infrastructure constraints ease further. One major addition with respect to improved gas processing infrastructure will be Dominion’s natrium processing plant in Marshall County, West Virginia, which is expected to go online next month .

This will be followed by the addition of three processing trains at Momentum’s Kensington plant in Columbiana County, Ohio, the first of which is expected to be operational by the middle of this year and the second scheduled to go online before the end of the year .

Final thoughts
As Chesapeake works to turn things around, it will focus on balancing its production mix – away from natural gas and toward liquids – and cutting production costs. In addition, it will continue with the asset sale strategy it embarked upon last year, as it works to reduce leverage, and raise much-needed cash.

For 2013, the company says it’s aiming for 27% liquids production growth, which should make liquids roughly 26% of its total production mix by year-end. The key growth engine expected to fuel this increase is the Eagle Ford play in Texas, where the company is the second largest leasehold owner, commanding 485,000 net acres.

The article Chesapeake Still Optimistic About the Utica originally appeared on Fool.com.

Fool contributor Arjun Sreekumar has no position in any stocks mentioned. The Motley Fool recommends Dominion Resources and Total SA. (ADR). The Motley Fool owns shares of Apache and Devon Energy and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.

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