Kodiak Oil & Gas Corp (USA) (KOG), Halcon Resources Corp (HK): These Companies Are Killing OPEC

5. Chesapeake Energy Corporation (NYSE:CHK)

The nation’s No. 2 natural gas producer is seeing tremendous growth in its oil production. The company devoted about 85% of its capital budget last year to focus on its liquids-rich acreage like the Eagle Ford Shale. That turned out to be money well spent, as the company saw its year-over-year oil production grow by 84.1%. Looking ahead, Chesapeake Energy Corporation (NYSE:CHK) is planning to cut its capital budget by 39% this year because of capital constraints. However, about 85% of that capital will be devoted to its liquids-rich acreage, and more than a third of those funds will be devoted to the oil-heavy Eagle Ford, meaning the company’s oil production will continue to head higher.

Final Foolish thoughts

While the dream of eliminating our need for foreign oil is a long way from becoming a reality, these five companies are certainly doing their part. The important link here is that oil production growth for all five is driven by either the Bakken or the Eagle Ford shale. Those two plays have been behind the boom in U.S. oil production growth, which is certainly starting to draw OPEC’s attention. While we can still only dream that our oil production will ever kill OPEC’s place in the world oil market, these five are certainly doing their part to make that a reality.

The article These Companies Are Killing OPEC originally appeared on Fool.com and is written by Matt DiLallo.

Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool has options on Chesapeake Energy.

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