Chesapeake Energy Corp. isn’t scared of decreasing oil prices. In fact, the company raised its full-year oil and natural production target and said that in every field it operates in the price of drilling is getting cheaper.
According to the Oklahoma City-based company’s website, Chesapeake is expected to pump 700,000 barrels of crude oil a day this year, which is 5,000 barrels higher than the company’s original target released back in August.
Regardless of oil prices being the lowest they have been in a decade, Chief Executive Officer Doug Lawler is not straying away from increasing output because costs to drill new wells are descending.
In Chesapeake’s two largest production areas, the Marcellus Shale and the Eagle Ford formation, well costs decreased 11 and 13 percent during the first seven months of this year compared to last year, stated the company. According to Joe Carrol of Bloomberg, the shale’s combined accounted for 34 percent of Chesapeake’s third-quarter output.
At eight a.m. today in New York, the company’s shares jumped by three percent to $21.94. Before this morning, the stock had shed 17 percent of its value this year.
In a strategic move to create more profit for crude oil production Lawler has been selling gas fields, pipelines, office buildings and drilling rigs.