Natural gas price drops hurt Oklahoma companies
Warmer weather and still-increasing production have combined to cause natural gas prices to tumble.
SandRidge Energy Inc. has boasted of its early forecasts and relatively quick switch, but natural gas still represents 47 percent of its production.
Chesapeake Energy Corp., previously known as “America's Champion of Natural Gas,” has said it plans to boost its oil and natural gas liquids to 35 percent of its production by 2015. As of August, however, natural gas and natural gas liquids still represented 87 percent of its mix.
Devon Energy Corp. historically has chosen a more balanced approach. Even still, the company produces 63 percent natural gas.
Continental Resources Inc. has the heaviest oil position among Oklahoma City's larger energy firms, but even “America's Oil Champion” has a 30 percent exposure to the low-price gas.
Many of the state's smaller companies are less able to change course and are even more dependent on natural gas.
While oil rich plays throughout the state have gained in popularity, Oklahoma continues to rely heavily on the price of natural gas.