By Ben Fox Rubin
Chesapeake Energy Corp. expects to spend less on capital
improvements in 2014, as the natural-gas company works to trim
costs after years of liberal spending.
The company projected $5.2 billion to $5.6 billion in 2014
capital expenditures, representing a 20% reduction from the
midpoint of 2013's outlook.
After adjusting for 2013 asset sales, the company expects to
generate 8% to 10% production growth this year, consisting of 8% to
12% oil production growth, 44% to 49% natural gas liquids
production growth and 4% to 6% natural gas production growth.
Per-unit production and general and administrative expenses are
expected to decline in 2014.
The Oklahoma City company, which spent billions of dollars more
than it made from operations in recent years, has started spending
less, but its cost-control efforts have raised concerns among
investors about the company's growth prospects.
New Chief Executive Doug Lawler has mapped out a strategy of
spending only as much money as the company brings in. Increased
production will come from drilling the best prospects, while leases
on less lucrative properties will be allowed to expire, Mr. Lawler
has said.
Write to Ben Fox Rubin at ben.rubin@wsj.com
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