Not quite sure what is going on in the PRB. August production numbers released today and CHK is showing a decline from the average 2nd Q production for both the 2 months of the 3rd Q and for the month of August. I thought they had 6 rigs going up there.
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The powder is a decent play, that’s why other operators are there. Chesapeake will fumble the ball up there. Need better people and better decisions. EOG kicks their a$$ all day long in the same area. CHK’s chips are almost to the felt, they need to make aggressive plays.
In investor presentations and quarterly earning calls, PRB was touted as the oil growth engine for the last 2 years (with much excitement). Drilling has been grossly mismanaged and completions does alright, but production folks in OKC wouldn't know how to produce a drop of oil if it was raining on their heads. Facilities design lacks experience and poor logistics wastes precious time. They'd better look elsewhere for oil growth.
The PRB will dwindle & die like it has before. CHK does a good job of marketing an asset and hyping wall street, but unfortunately they cannot execute according to their word... never have, never will. This is mostly due to management not listening to troops on the ground.
and the PRB is supposed to be their cash flow machine???? Link please.