Chesapeake’s proved reserves
At the end of 2015, Chesapeake Energy’s (CHK) proved reserves were ~1.5 billion boe (barrels of oil equivalent) compared to ~2.5 billion boe at the end of 2014.
Chesapeake’s reserve replacement ratio
Chesapeake’s reserve replacement ratio was -289% in 2015 compared to ~19% in 2014. The reserve replacement ratio indicates the number of barrels of oil equivalent a company adds to its reserve base in relation to the amount of oil and gas it produces.
In comparison, upstream peers Continental Resources (CLR), Hess (HES), and Apache (APA) had reserve replacement ratios of -54%, -148%, and -308%, respectively, in 2015. Now let’s look at Chesapeake’s natural gas production trends.