WASHINGTON (dpa-AFX) - Chesapeake Energy Corp. (CHK) announced substantial progress in achieving its long-term debt reduction goal set forth in its 30/25 Plan announced in January 2011.
Chesapeake Energy's long-term debt as of year-end 2011 was around $10.3 billion, a reduction of $1.4 billion from the September 30, 2011 level of $11.7 billion and a reduction of $2.2 billion from the year-end 2010 level of $12.5 billion.
The company stated that its 30/25 Plan calls for its long-term debt to be approximately $9.5 billion as of year-end 2012 and the company fully intends to achieve this level by year-end 2012, regardless of the price of natural gas during the year. Chesapeake Energy added that in the first year of the plan, it achieved above 70% of its two-year goal and reduced its long-term debt per unit of proved reserves from $0.73 per thousand cubic feet of natural gas equivalent, or mcfe, to around $0.55 per mcfe, a debt per mcfe reduction of 25% in just one year.
In addition, the 30/25 Plan calls for the company to increase its production by 30% during the two-year period ending December 31, 2012, net of property divestitures.
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