Lawler said Chesapeake will exercise greater fiscal discipline by bringing its capital expenditures in line with its cash flow.
He said ongoing asset sales have raised enough money to fund all of Chesapeake's planned capital expenditures this year, but additional sales still are possible.
Lawler also said continued efficiency gains will allow Chesapeake to trim its capital expenditures, as it balances spending with cash flow from operations.
“We're implementing a new competitive capital allocation process to ensure the highest quality projects are funded, we will continue to divest our noncore assets and noncore affiliates,” he said in Thursday's earnings call with analysts. “We will reduce our financial and operational risk and complexity, and we will achieve investment grade credit metrics.”
Lawler said Chesapeake will focus on developing its highest quality assets.
“Chesapeake has a world-class inventory with significant growth potential in multiple basins,” he said.
“This inventory will provide competitive production reserve growth for years to come,” he said.