Chesapeake Energy Corporation (NYSE:CHK.PRD) Q2 2016 Earnings Conference Call - Preliminary Transcript
Aug 04, 2016 • 09:00 am ET
Good day and welcome to the Chesapeake Energy Corporation Q2 2016 conference call. Today's conference is being recorded. At this time, I would like turn the conference over to Brad Sylvester. please go ahead, sir.
Good morning, everyone. And thank you for joining us on our call today to discuss Chesapeake's financial and operational results for the 2016 second quarter. Hopefully, you've had a chance to review our press release and the updated investors lives that we posted to our website this morning. During this morning's call, we will be making forward looking statements which consists of statements that cannot be confirmed by reference to existing information, including statements regarding our beliefs, goals, expectations, forecasts, projections and future performance and the assumptions underlying such statements.
Please note that there are a number of factors that will cause actual results to differ materially from our forward looking statements, including the factors identified in our earnings release today, and another SEC documents. Please note that accepted by extent as required by applicable law, we undertake no duty to update any forward looking statements and you should not place undue reliance on such statements.
We may also refer to some non-GAAP financial measures which help facilitate comparisons across periods and with peers. For any non GAAP measures. We use a reconciliation to the nearest corresponding GAAP measure may be found on our website and in our earnings release.
With me on the call today, or Doug Lawler, Our Chief Executive Officer; Nick Dell'Osso, Chief Financial Officer; and Jason Pigott, our executive vice president over the southern division, Doug will begin the call and then turn the call over to Nick for reveal our financial results. And then we'll turn the teleconference over for Q&A.
So with that, thank you and now we'll turn that teleconference over to Doug.Thank you, Brad and good morning. I hope you've had the opportunity to review our press release and presentation from earlier this morning. We continue to make good progress on multiple fronts including a meaningful reduction or debt stronger production, lower operating costs and optimization of our portfolio. While we still face a challenging commodity price environment, I think it's important to note the significant progress that Chesapeake Energy has made despite commodity prices.
In the past three years, we've reduced our total average by approximately 50%. We reduce our cash cost by roughly 50% and significantly improved our capital efficiency. This year's capital program is roughly 10% of the capital spent in 2012. And importantly, our production today is approximately equivalent to our 2012 production. We have sharpened our operational capability, technology, geoscience and engineering to drive further value for our shareholders for the long term.
We have three major gas assets, each with a significant well inventory of new drilling opportunities that can produce an excess of 30 million cubic feet per day per well. I'd like to share a few examples of our continued progress and the Haynesville we have recognized transformational value improvements