This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Chesapeake Energy Corporation Reports Financial And Operational Results For The 2012 Fourth Quarter And Full Year

For the 2012 full year, the company’s year-over-year growth rate of natural gas production was 12%, or approximately 333 bcf per day, and its year-over-year growth rate of liquids production was 54%, or approximately 46,770 bbls per day. Chesapeake’s year-over-year liquids production growth consisted of oil production growth of 84%, or approximately 38,950 bbls per day, and NGL production growth of 19%, or approximately 7,820 bbls per day.

As a result of completed and planned asset sales and the continued shift in focus in its drilling program from dry gas plays to liquids-rich plays, Chesapeake is projecting its natural gas production to decline approximately 7% in 2013 and is projecting its liquids production to increase approximately 27% in 2013.

During 2012, Company Adds New Net Proved Reserves of 5.0 Tcfe, or 840 Mmboe, through the Drillbit; Total Proved Reserves Decrease 17% to 15.7 Tcfe, or 2.6 Bboe, Primarily Due to Downward Price-Related Revisions and Net Divestitures

The company's December 31, 2012 estimated proved reserves were 15.690 tcfe, or 2.6 billion barrels of oil equivalent (bboe), a 17% decrease from year-end 2011. Chesapeake added 5.042 tcfe, or 840 million barrels of oil equivalent (mmboe), of new proved reserves (net of 1.349 tcfe, or 225 mmboe of nonprice-related revisions) through the drillbit at a drilling and completion cost of $1.82 per thousand cubic feet of natural gas equivalent (mcfe), or $10.92 per barrel of oil equivalent (boe), during 2012.

Primarily as a result of lower natural gas prices, the company recorded downward price-related revisions of 5.414 tcfe, or 902 mmboe, during 2012. These price revisions were seen primarily with the removal of proved undeveloped reserves (PUDs) in the company’s Barnett and Haynesville shale plays. The majority of the downward nonprice-related revisions of 1.349 tcfe resulted from the continued execution of the company’s strategy to shift its drilling focus from natural gas to liquids-rich areas and to drill in the “core of the core” of its acreage positions. As rigs were reallocated, PUDs were removed from various non-core areas resulting in downward revisions. Additionally, during 2012, Chesapeake recorded net divestitures of 1.305 tcfe, or 218 mmboe.

4 of 13

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs