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.
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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.