Chesapeake Energy Corporation is engaged in the acquisition, exploration, and development of properties for the production of natural gas, oil, and natural gas liquids (NGL) from underground reservoirs in the United States. The company’s core natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and east Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas. The company also owns substantial marketing, compression and oilfield services businesses. Divisions The company opertaes in two geographic divisions, Southern and Northern. Southern Division: This division includes the Eagle Ford Shale in south Texas, the Granite Wash/Hogshooter, Cleveland, Tonkawa and Mississippi Lime plays in the Anadarko Basin in northwestern Oklahoma, the Texas Panhandle and southern Kansas, the Haynesville/Bossier Shale in northwestern Louisiana and east Texas, and the Barnett Shale in the Fort Worth Basin in north-central Texas. Northern Division: This division includes the Utica Shale in Ohio, West Virginia and Pennsylvania, the Marcellus Shale in the northern Appalachian Basin in West Virginia and Pennsylvania, and the Niobrara Shale in the Powder River Basin in Wyoming. Well Data As of December 31, 2013, the company had interests in approximately 46,800 gross (20,900 net) productive wells, including properties in which the company held an overriding royalty interest. Of these wells, 38,100 gross (18,400 net) were classified as natural gas productive wells and 8,700 gross (2,500 net) were classified as oil productive wells. During 2013, the company completed 1,376 gross (899 net) wells and participated in another 564 gross (86 net) wells completed by other operators. Marketing Chesapeake Energy Marketing, Inc., a wholly owned subsidiary, provides natural gas, oil and NGL marketing services, including commodity price structuring, contract administration and nomination services for the company, other interest owners in Chesapeake-operated wells and other producers. Midstream Gathering Operations The company invests, directly and through affiliates, in gathering systems and processing facilities to complement its natural gas operations in regions where the company had significant production and additional infrastructure was required. These systems were designed primarily to gather the company's production for delivery into major intrastate or interstate pipelines. In addition, its midstream business provided services to joint working interest owners and other third-party customers. The company also processed a portion of its natural gas at various third-party plants. In 2013, the company sold substantially all of its midstream business and most of its gathering assets. The company owns the following midstream assets: certain gathering pipelines primarily associated with vertical well production in the northeastern U.S.; flowlines, which are between 200 feet and 1 mile in length, for its production in each operating area; and four natural gas processing facilities located in West Virginia. Compression Operations The company’s wholly owned subsidiary, MidCon Compression, L.L.C. (MidCon) operates wellhead and system compressors, with approximately 1.0 million horsepower of compression, to facilitate the transportation of natural gas primarily produced from Chesapeake-operated wells. Oilfield Services COS Holdings, L.L.C. (formerly Chesapeake Oilfield Services, L.L.C.) (COS) owns and operates its oilfield services assets. COS is a diversified oilfield services company that provides a range of well site services, primarily to the company and its working interest partners. These services include drilling, hydraulic fracturing, oilfield rentals, rig relocation, fluid handling and disposal and manufacturing of natural gas compressor packages. As of December 31, 2013, COS owned or leased 115 land drilling rigs, including 10 proprietary, fit-for-purpose PeakeRigs that utilize advanced electronic drilling technology. As of December 31, 2013, COS owned 9 hydraulic fracturing fleets with an aggregate of 360,000 horsepower; a diversified oilfield rentals business; an oilfield trucking fleet consisting of 260 rig relocation trucks; 67 cranes and forklifts used to move drilling rigs and other heavy equipment; and 246 fluid hauling trucks. Reserves The company's proved reserves, as of December 31, 2013, were 2.678 bboe (one billion barrels of oil equivalent). Business Strategy The company focuses on finding and producing hydrocarbons in a responsible manner that seeks to maximize shareholder returns. It intends to increase its profitability and decrease corporate and balance sheet complexity through the execution of business strategy, which consists of two fundamental tenets: financial discipline and profitable and efficient growth from captured resources. Significant Events In May 2014, Access Midstream Partners LP announced plans to expand its Utica East Ohio midstream service complex. The complex is a joint venture with M3 Midstream LLC and EV Energy Partner LP. In August 2014, Chesapeake Energy Corp. acquired acreage, producing wells and infrastructure in Ohio and West Virginia. Through two separate deals, which closed on August 5, 2014, the American Energy Partners LP affiliates are picking up, in total, 33 wells and 163 million cubic feet of production, 75,000 net acres, and 24 miles of pipeline and related infrastructure, which includes three taps into transmission lines. History Chesapeake Energy Corporation was founded in 1989.
chesapeake energy corp (CHK:New York)
6100 North Western Avenue
Oklahoma City, OK 73118
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