Shares of Chesapeake Energy Corp. (CHK) jumped more than 12% on Wednesday after the oil and gas company said its fourth-quarter production numbers would come in above analysts' expectations.
The Oklahoma City-based company said in a statement that it sees production for the most recent quarter of 462,000 to 464,000 barrels of oil equivalent (BOE) per day, compared with the FactSet consensus of 448,000 BOE per day.
Oil production is estimated to range from 86,000 to 87,000 barrels of oil per day, above the FactSet consensus of 85,200.
The company's shares have gained almost 30% since touching a one-year low of $1.90 in mid-December.
Separately, the company said it has reduced its total outstanding debt by roughly $1.8 billion since the end of 2017. For 2019, the company said it plans to reduce its capital expenditures by lowering its rig count by 20% to an average of 14 rigs vs. 18 currently.
"Looking forward to 2019, we are confident in our ability to drive further competitive performance through the quality of our investments and our capital and operating discipline," said Chesapeake CEO Doug Lawler. "The improvement in our capital efficiency, along with our focus on our high-margin oil investments, should result in higher operating cash flow and stronger margins in 2019 compared to 2018."
Chesapeake will release its full fourth-quarter results in the second half of February.