OKLAHOMA CITY — Feb. 25, 2015— Chesapeake Energy Corporation announced details of its 2015 outlook Feb. 25.

Chesapeake is budgeting total capital expenditures of $4-$4.5 billion for 2015, a 26 percent reduction from the company’s 2014 capital expenditures.

The company is targeting 2015 production of 235-240 million barrels of oil equivalent (mmboe), or average daily production of 645-655,000 barrels of oil equivalent (mboe), which represents 3-5 percent production growth after adjusting for 2014 asset sales.

Rig count lowered. Chesapeake plans to operate 35-45 rigs in 2015, which represents the company’s lowest operated rig activity level since 2004.

In the Utica formation, the company expects to operate between three and five rigs in 2015, down from an average of eight rigs operated in 2014. In the Marcellus, the company expects to operate only one or two rigs, down from five last year.

The company intends to spud approximately 790 gross operated wells and connect to sales approximately 800 gross operated wells in 2015, a decrease from approximately 1,175 and 1,150 wells, respectively, in 2014.

2014 production

Chesapeake’s daily production for the 2014 full year averaged 706,300 barrels of oil equivalent (boe), a year-over-year increase of 9 percent, adjusted for asset sales.

Average daily production consisted of approximately 115,800 barrels (bbls) of oil, 3.0 bcf of natural gas and 90,500 bbls of NGL.

Utica Shale (Eastern Ohio)

Utica net production averaged approximately 100 mboe per day during the 2014 fourth quarter, an increase of 17 percent sequentially.

The 2014 average completed well cost (January through October) was approximately $6.6 million, with an average completed lateral length of 6,000 feet and 27 frac stages, compared to an average completed well cost of $6.7 million in 2013 with an average completed lateral length of 5,150 feet and 17 frac stages.

Wells in various stages of completion or waiting on pipeline in the area decreased to 166 as of Dec. 31, 2014, compared to 195 at Dec. 31, 2013.

The average peak production rate of the 51 wells that commenced first production in the Utica during the 2014 fourth quarter was approximately 1,280 boe per day.

Marcellus Shale (Northern Pennsylvania)

Northern Marcellus net production averaged approximately 817 mmcfe per day during the 2014 fourth quarter, a decrease of 7 percent sequentially.

The 2014 average completed well cost (January through October) was approximately $7.3 million with an average completed lateral length of 5,900 feet and 27 frac stages, compared to an average completed well cost of $7.9 million in 2013 with an average completed lateral length of 5,400 feet and 13 frac stages.

Wells in various stages of completion or waiting on pipeline in the area increased to 117 as of Dec. 31, 2014.

The average peak production rate of the 25 wells that commenced first production in the northern Marcellus during the 2014 fourth quarter was approximately 15.2 mmcfe per day.