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Chesapeake Energy Plans to Lower 2024 Natgas Output

NATURAL GAS

Chesapeake Energy announced its capital spending plan will fund around 2.65bcf/d to 2.75bcf/d of natural gas output in 2024, significantly below the firm’s previous output, the firm.

  • The company’s natural gas output in 4Q 2023 stood at 3.43bcf/d, compared with 4.05bcf/d a year earlier.
  • “Given current market dynamics, the company plans to defer placing wells on production while reducing rig and completion activity,” it said.
  • As a result, front month US Henry Hub surged to an intra-day high of $1.709/mmbtu yesterday, up from a session low of $1.554/mmbtu. Henry Hub futures are holding onto gains today.
    • US Natgas MAR 24 up 7.4% at 1.69$/mmbtu
    • US Natgas AUG 24 up 7.7% at 2.39$/mmbtu

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