(RTTNews) - While reporting its financial results for the fourth quarter on Wednesday, Chesapeake Energy Corp. (CHK) said it is reducing its 2020 capital expenditure budget by about 30 percent, while maintaining relatively flat oil production and decreasing gas production year over year.
The company said it plans to allocate about 80 percent of its projected 2020 capital expenditure program of $1.3 billion to $1.6 billion to its highest-margin oil opportunities. The company's capital expenditure program is 2019 was $2.245 billion.
Chesapeake Energy expects oil production for the year will remain relatively flat year over year, while total production is projected to decrease as gas volumes decline.
In addition to cutting its 2020 capital program by about 30 percent compared to 2019, Chesapeake Energy said it expects to further improve its cost structure by reducing production and G&A expenses by over 10 percent year over year.
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