Home Business Chesapeake Energy to Exit Eagle Ford Shale in Hard Pivot to Gas

Chesapeake Energy to Exit Eagle Ford Shale in Hard Pivot to Gas

2 min read
Comments Off on Chesapeake Energy to Exit Eagle Ford Shale in Hard Pivot to Gas
0
29


(Bloomberg) — Chesapeake Energy Corp. plans to exit the Eagle Ford Shale of South Texas as it increasingly pivots away from oil to natural gas, the company’s Chief Executive Officer Nick Dell’Osso told Bloomberg.

Article content

(Bloomberg) — Chesapeake Energy Corp. plans to exit the Eagle Ford Shale of South Texas as it increasingly pivots away from oil to natural gas, the company’s Chief Executive Officer Nick Dell’Osso told Bloomberg. 

Article content

The Eagle Ford wells are profitable but can’t compete with the company’s natural gas assets, Dell’Osso said, which means that “it’s time to exit.” 

“It’s a big asset and it will take time to find a buyer,” Dell’Osso said. “We are going to be patient and maximize value for our shareholders.”

Natural gas from leases in the Marcellus Shale of Pennsylvania and the Haynesville Shale of Louisiana pushed the company’s net income to $1.2 billion during the second quarter, which is more than 14 times higher than a year ago. Prices have surged amid a global shortage of the power plant and winter heating fuel.



Source link

Load More Related Articles
Load More By James Tisdale
Load More In Business
Comments are closed.

Check Also

Four out of ten Canadians report significant gap between culture their workplace claims to have versus their reality

Article content Supported by TELUS Health, LifeWorks’ Mental Health Index™ finds negative …