Chesapeake Energy Corp. plans to exit the Eagle Ford Shale of South Texas as it increasingly pivots away from oil to natural gas, the company’s Chief Executive Officer Nick Dell’Osso told Bloomberg.
The Eagle Ford wells are profitable but can’t compete with the company’s natural gas assets, Dell’Osso said, which means that “it’s time to exit.”
“It’s a big asset and it will take time to find a buyer,” Dell’Osso said. “We are going to be patient and maximize value for our shareholders.”
Natural gas from leases in the Marcellus Shale of Pennsylvania and the Haynesville Shale of Louisiana pushed the company’s net income to $1.2 billion during the second quarter, which is more than 14 times higher than a year ago. Prices have surged amid a global shortage of the power plant and winter heating fuel.