Continuing its drive to become an oilier company, Chesapeake Energy said that during the second quarter of 2019 it increased oil production by 10% year over year exclusive of asset sales and purchases.
The company that once billed itself as "America's Champion of Natural Gas" reported in its Q2 earnings that it projects to grow its crude oil production by double digits in 2020, while reducing the amount of capital allocated to its legacy gas assets, and forecasting a double-digit decline in gas production in 2020.
"Chesapeake produced a record 122,000 barrels of oil per day, and we increased our oil mix percentage to a record 25% of total production," President and CEO Robert Douglas Lawler said during the company's earnings call Tuesday.
Lawler attributed the oil volume increase to the integration of assets in the Eagle Ford and Austin Chalk plays of Texas that Chesapeake acquired through its recent purchase of Wildhorse Resources, and to "steady growth from the Powder River Basin and improved base production performance from South Texas and the Midcontinent."
Interesting to see how different companies "evolve" over time as to the gas vs oil balance. An example is Cabot selling their entire Eagle Ford effort to go 100% gas in the Northeast. I wonder when they may "swing back" to a more oily portfolio? Not an easy thing to change direction as to oil vs gas portfolio.
Chesapeake has worked long and hard to get to where they are today as well as culling less prospective properties and trying to focus on the best route possible for them.