Chesapeake cutting capital budget due to low natural gas prices

Pointing to low natural gas prices, Chesapeake Energy Corp. is cutting a half-billion dollars from its planned capital expenses this year, just a month after announcing major reductions in spending and rig count, reports Columbus Business First. According to the newspaper, the Oklahoma City-based driller said its capital budget will fall $500 million from the $4 billion to $4.5 billion projection it made in February. (See our March 2, 2015 blog “Chesapeake Energy will reduce capital spending, drilling activity.”) Chesapeake’s average rig count will continue to decline as well, but Business First says the company is keeping its rig count at three to five in the Utica shale play in eastern Ohio. For more, read the full story.

National, Ohio