Profile: Chesapeake Energy Corp (CHKDH.PK)
27 Jun 2013
Chesapeake Energy Corporation (Chesapeake), incorporated on November 19, 1996, is a producer of natural gas, oil and natural gas liquids (NGL) in the United States. The Company operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. The exploration and production segment is responsible for finding and producing oil, natural gas and NGL. The marketing, gathering and compression segment is responsible for marketing, gathering and compression of oil, natural gas and NGL. The Company owns interests in approximately 43,700 oil and natural gas wells, and produces an average of approximately 660 thousand barrels of oil equivalent (mboe) per day. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas; the Utica Shale in Ohio and Pennsylvania; the Anadarko Basin in northwestern Oklahoma and the Texas Panhandle, and the Niobrara Shale in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin in Pennsylvania, and the Barnett Shale in the Fort Worth Basin of north-central Texas. The Company also owns oil and natural gas marketing, and natural gas gathering and compression businesses.
The Company focuses its exploration, development, acquisition and production efforts in the two geographic operating divisions, southern division and northern division. Southern Division includes the Eagle Ford Shale in South Texas, the Anadarko Basin in northwestern Oklahoma and the Texas Panhandle, the Haynesville/Bossier Shales in northwestern Louisiana and East Texas, and the Barnett Shale in the Fort Worth Basin in north-central Texas. Northern Division includes the Utica Shale in Ohio and Pennsylvania, the Marcellus Shale in the northern Appalachian Basin in Pennsylvania, and the Niobrara Shale in the Powder River Basin in Wyoming. The Company holds an interest in approximately 43,700 gross productive wells, including over 32,200 properties in which it holds a working interest and over 11,500 properties in which it holds an overriding royalty interest. Of the wells in which the Company has a working interest, over 27,000 gross are classified as natural gas productive wells and over 5,200 gross are classified as oil productive wells. The Company operates approximately 20,800 of its over 32,200 productive wells in which it has a working interest.
Chesapeake Energy Marketing, L.L.C., one of the Company's subsidiaries, provides oil, natural gas and NGL marketing services, including commodity price structuring, securing and negotiating gathering, hauling, processing and transportation services, contract administration and nomination services for Chesapeake and other interest owners in Chesapeake-operated wells. The Company also performs marketing services for third-party producers in wells in which it does not have an interest. Oil production is generally sold under market-sensitive short-term or spot price contracts. Natural gas and NGL production is sold to purchasers under percentage-of-proceeds contracts, percentage-of-index contracts or spot price contracts. The Company operates its compression business through the subsidiaries Compass Manufacturing, L.L.C. (Compass) and MidCon Compression, L.L.C. (MidCon). Compass designs, engineers, fabricates, installs and sells natural gas compression units, accessories and equipment used in the production, treatment and processing of oil and natural gas. A majority of the completed compressors are sold to MidCon. MidCon operates wellhead and system compressors, with approximately 450,000 horsepower of compression, to facilitate the transportation of natural gas primarily produced from Chesapeake-operated wells.
Chesapeake Energy Corp
6100 N WESTERN AVE
OKLAHOMA CITY OK 73118
Company Web Links
- Chesapeake to sell Haynesville asset for $450 million to Indigo Minerals LLC
- BRIEF-Icahn dissolves shared share stake in Chesapeake Energy
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- BRIEF-Chesapeake Energy receives DOJ subpoena, voluntary document request from SEC
- Chesapeake Energy expects to exit 2017, 2018 with higher output