In a Chesapeake State of Mind

In a Chesapeake State of Mind

Of the E&P comebacks we’ve followed this year, one for us in particular rises to the top like sweet cream in a hot cup of coffee. But then, as a fellow Okie, we could be a smidge biased. Reese Energy Consulting today is studying the phoenix-like rise of Okla. City-based Chesapeake, which emerged from bankruptcy in February to find itself back on track in a big way. In the eight months since, Chesapeake shifted its oil-gas weight to primarily gas with a restructuring plan to shed $7.8 billion in debt, reshuffled its leadership, and scored one of 2021’s most impressive acquisitions earning the title of largest gas producer in the Haynesville. The deal in August valued at $2.2 billion with Texas-based Vine Energy more than tripled the company’s total gas production from 531 MMCFD to 1.6 BCFD. Two months later, Chesapeake welcomed a new president and CEO while forecasting an increase in production from 436 MBOEPD (80% gas) to 595 MBOEPD next year. Now, Chesapeake will buy back $1 billion in stock along with plans to ramp up its Eagle Ford oil activity with 30 to 40 new wells that it expects will contribute to a profit growth of more than 50%. Rock on, Ches.

What do you think? Learn more about REC and our natural gas marketing services at www.ReeseEnergyConsulting.com.

Chesapeake Energy

Chesapeake Energy Corporation is an American energy company engaged in hydrocarbon exploration. It is headquartered in Oklahoma City. The company is named after the founder’s love for the Chesapeake Bay region. The company is ranked 373rd on the Fortune 500.

www.chk.com

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X Marks the Spot in Oklahoma

X Marks the Spot in Oklahoma

Snapping up underperforming oil and gas assets in Texas may have been the initial target for Xfuels to enter the biz from its native Alberta, but Okla., is soon to become the energy company’s first landing zone. Reese Energy Consulting today is following the latest announcement from Xfuels whose new U.S. subsidiary Cycle Oil and Gas has picked up 516 wells across 10 counties in northeast Okla., and southeast Kans. The stock-and-cash deal with Ardmore, Okla.-based Jubilee Exploration marks Xfuel’s largest acquisition to date and includes 375 pumping stations and a wide range of other equipment valued at $15 million. Most wells are currently low-producing or shut-in, making them ideal to leverage the company’s inhouse well services team and proprietary and licensed technologies to return distressed assets to profitability. First order of business will be to increase gas production from a cluster of 142 Jubilee wells in Okla., to 2.5 MMCFD within a year and 7.5 MMCFD in two. Xfuels expects to achieve revenues between $4.5 and $13.5 million from its Phase I development assuming a market price at or near $5 per MCF.

What do you think? Learn more about REC and our range of natural gas services and expertise at www.ReeseEnergyConsulting.com.

Xfuels Inc.

Xfuels, Inc. designs, builds, and operates regionally-integrated, small-to-midcap electricity and petroleum production facilities.
 

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