A transformed Chesapeake Energy Corp. will spend significantly less money this year while still increasing its oil and natural gas production, CEO Doug Lawler said Thursday.
“The Chesapeake team worked diligently on several major initiatives designed to ensure that our processes and practices maximize returns from our exceptional asset base,” Lawler said. “We have established specific strategic goals and metrics that we believe will drive us toward top-quartile operational, financial and shareholder return performance among our peers.”
Chesapeake has pared its capital budget to a range of $5.2 billion to $5.6 billion this year, down about 20 percent from 2013. That is about 60 percent lower than it was from 2010-2012, the last years of co-founder Aubrey McClendon’s tenure as chief executive.
McClendon was forced out last year after losing a power struggle with the company’s new board, which had been pushing to cut costs at the company that has spent more than it earned for much of its existence.
Lawler, who took over in June, said Chesapeake is poised to become a “differential investment and industry partner of choice in 2014 and beyond,” thanks to its disciplined capital allocation, budget and cost leadership programs.