Chesapeake Energy

IEEFA Research

IEEFA U.S.:  Appalachian frackers report $504M in negative free cash flow despite capex slashing

IEEFA U.S.: Appalachian frackers report $504M in negative free cash flow despite capex slashing

Tide of red ink shows little sign of ebbing any time soon for shale-focused regional gas producers

December 3, 2020 (IEEFA)—Even after cutting their capital expenditures (capex) by more than one-third from the previous year, nine shale-focused gas producers in Appalachia spent a half-billion dollars more during the third quarter on drilling and building projects than they earned from selling oil and gas. Capex investments during the third quarter were the lowest […]

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

IEEFA U.S.: Capex cuts fail to stem gusher of red ink for Appalachian frackers

Nine major E&P companies collectively lost more than $1 billion over past year

September 10, 2020 (IEEFA) — Even after cutting capital expenditures to their lowest quarterly point in more than six years, nine Appalachian shale-focused gas producers continued to hemorrhage money, reporting more $134 million negative free cash flows in the second quarter of 2020.  Together, they have spilled $1.1 billion in red ink over the past […]

IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

IEEFA update: Frackers record positive free cash flow during Q1, no thanks to economics of gas industry

Capex reductions, financial hedging offset plunging demand

June 25, 2020 (IEEFA)—Nine fracking-focused gas companies in Appalachia reported a positive free cash flow during the first quarter of 2020—but only after slashing capital expenditures and reporting significant revenues from financial hedging, according to a new study by the Institute for Energy Economics and Financial Analysis (IEEFA). The positive first quarter results, however, didn’t […]

IEEFA update: Appalachia fracking industry faces uphill battle for earnings

IEEFA update: Appalachia fracking industry faces uphill battle for earnings

Companies perform poorly, even compared with other struggling E&Ps

November 26, 2019 (IEEFA U.S.) ‒ Faced with persistently low natural gas prices, exploration and production (E&P) companies with operations in Appalachia continued to struggle financially in the third quarter of 2019. An IEEFA analysis reveals that seven of Appalachia’s largest producers collectively spent half a billion dollars more on drilling than they realized by […]

More News and Commentary

Canadian pension fund, Williams form pipeline entity targeting Marcellus and Utica basins

Reuters: Canada Pension Plan Investment Board is expanding its presence in the North American natural gas market through a $3.8 billion joint venture with U.S. energy firm Williams Cos Inc, which will hold pipeline assets in the Marcellus and Utica shale basins, the biggest gas-producing region in the United States. Canada’s largest pension fund will […]

March 19, 2019 Read More →

Chesapeake cutting capital expenditures and drilling in response to low natural gas prices

Chesapeake Energy plans to reduce its capital expenditure by $500 million and to reduce its rig count by more than 50% in 2015. Reporting in SNL, Mark Passwaters notes that Chesapeake has also cut back on its production targets in 2015. These revisions to 2015 forecasts are driven by continued low natural gas prices. Excerpts: […]

March 24, 2015 Read More →