Chesapeake energizes outlook. Natural gas company Chesapeake Energy (CHK) boosted its production outlook for 2008-9, citing higher recovery expectations and increased drilling activity. It also announced a new discovery in Louisiana that could benefit the company more than any other play to date. CHK will move from 4 to 10 rigs by year-end and add more in 2009.
To facilitate additional drilling, it will increase capital expenditure by $275 million and $675 million for 2008 and 2009. In a departure, it said it is now developing four oil projects. A note of caution from energy analyst David Heikkinen: "Whenever we hear an increase in activity levels by the largest North American driller, that ought to bear a bit of cauti on for the gas markets."
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