Higher gas output ahead

Article Excerpt

CHESAPEAKE ENERGY $28.83 (New York symbol CHK; SI Rating: Extra Risk) (405-848-8000; www.chkenergy.com; Shares outstanding: 641.7 million; Market cap: $18.5 billion) now expects next year’s gas production to rise by 8% to 10% over 2009, to between 882 billion cubic feet and 902 billion cubic feet. Roughly 92% of Chesapeake’s production is natural gas. In its first forecast for 2011, Chesapeake expects gas production to rise by 12% to 14% over 2010. The increased output will come from higher exploration and development spending. The company is also expecting continued success at its Haynesville, Marcellus, Fayetteville and Barnett shale-gas projects. Chesapeake is a buy. buy…