CHESAPEAKE ENERGY CORPORATION REPORTS FIRST QUARTER 2024 RESULTS

Emphasis added is my own.  This is an excerpt.

OKLAHOMA CITY, April 30, 2024 /PRNewswire/ -- Chesapeake Energy Corporation (NASDAQ:CHK) today reported first quarter 2024 financial and operating results.

Net income of $26 million, or $0.18 per fully diluted share; adjusted net income⁽¹⁾ of $80 million, or $0.56 per share

Net cash provided by operating activities of $552 million

Adjusted EBITDAX⁽¹⁾ of $508 million; free cash flow⁽¹⁾ of $131 million

Delivered $112 million in adjusted free cash flow⁽¹⁾ yielding combined quarterly base and variable dividend of $0.715 per common share to be paid in June 2024

Produced approximately 3.20 bcf/d net (100% natural gas); building productive capacity with 46 combined DUCs and deferred TILs at the end of the quarter

Reaffirmed credit facility borrowing base and increased aggregate commitments to $2.5 billion

Operations Update

Chesapeake's net production in the first quarter was approximately 3.20 bcfe per day (100% natural gas), utilizing an average of nine rigs to drill 28 wells and place 29 wells on production while building an inventory of 24 drilled but uncompleted (DUCs) wells and 22 deferred turn in lines (TILs). Chesapeake is currently operating eight rigs and two completion crews. The company plans to drop an additional rig in the Marcellus around mid-year.

Given continued weak market dynamics, the company is executing its previously disclosed plan to defer completions and new well turn in lines, building short-cycle, capital efficient productive capacity which can be activated when supply and demand imbalances correct. At the end of the first quarter the company had 50 DUCs, approximately twice its normal average at current rig counts, and 22 deferred TILs. For the full-year, the company expects to drill 95 – 115 wells and place 30 – 40 wells on production, which is consistent with previous guidance.