Chesapeake’s production expense
Chesapeake Energy’s (CHK) production expense in 2016 was $3.05 per boe (barrel of oil equivalent). Its 2017 production expense guidance range is $2.50–2.70 per boe.
CHK management noted in the 2Q17 earnings conference call, “We expect our combined production and G&A expenses to move lower in the second half of 2017 on a per unit basis. This is despite a modest increase in G&A costs, primarily as a result of asset sales.”
CHK’s break-even prices in the Eagle Ford, Powder River Basin, and Mid-Continent are $40 per barrel, $35 per barrel and $40 per barrel, respectively. In the Haynesville, Marcellus, and Utica, its break-even prices are $2.50 per Mcf (thousand cubic feet), $2.10 per Mcf, and $2.50 per Mcf, respectively.