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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New Midstream Milestones

New Midstream Milestones

Renewable energy, carbon capture, and hydrogen are the big buzzwords for oil and gas majors tasked with dramatically reducing their emissions in a green-conscious world. But as you’ve no doubt read, it’s not just the big boys or strictly E&Ps planning for and implementing their own transition to a future beyond conventional fuels. Midstream is right there, too, whether it’s Energy Transfer creating a renewables business or Enterprise Products partnering with Chevron to explore CO2 capture and storage opportunities. Reese Energy Consulting today is following the latest news in this realm from Tulsa-based Williams, which last year announced adding solar power to its natural gas pipeline and processing operations in nine states. Williams now will join forces with Denmark’s largest energy company Ørsted to co-develop hydrogen-based and renewable energy projects beginning in western Wyo., where Williams operates expansive infrastructure to transport and process gas. Potential initiatives could include large-scale wind, electrolysis for hydrogen production, and synthetic gas production.

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

Williams Companies

The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets. A Fortune 500 company, its common stock is a component of the S&P 500.

www.williams.com

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