Chesapeake gets high marks on responsible production
SUMMARY
The US shale player set a goal of reaching net-zero greenhouse gas emissions by 2035.
By Daniel GraeberPOSTED IN:
US shale explorer Chesapeake Energy said December 21 it is now the first company to have its output from the Haynesville basin certified as responsibly produced under two separate standards.
Chesapeake said its roughly 1bn ft3/day of natural gas production from Haynesville is now certified under both the MiQ methane standard and the EO100 Standard for Responsible Energy Development, which covers a broad range of environmental, social and governance (ESG) criteria.
Chesapeake said it set a target of reaching net-zero direct greenhouse gas emissions by 2035 and committed to lowering its methane intensity to 0.09% company-wide by 2025. For its legacy production in Haynesville, the company said it has already achieved a grade A status from MiQ, which grades methane intensity on a scale from A-F.
“While we're extraordinarily proud of our progress, we recognise there is important work ahead as we demonstrate continuous improvement across all of our operations and highlight the crucial role of responsible US energy production in helping the world meet the energy needs of its citizens as well as the environmental needs of the planet,” Chesapeake CEO Nick Dell'Osso said.
Chesapeake reported adjusted net income during the third quarter of $269mn. It also increased its expected 2021 adjusted Ebitdax, a reflection of core earnings, to a range of $2.1-$2.2bn. This marks an upward revision from its previous guidance of $1.8-$1.9bn.
Chesapeake said it expects a net increase in output while at the same time maintaining capital discipline. It reported a net average rate of production of approximately 436,000 barrels of oil equivalent/day during the third quarter, weighted 80% to natural gas.
