Chesapeake Energy Corporation (NYSE:CHK) Q3 2016 Earnings Conference Call - Final Transcript
Nov 03, 2016 • 09:00 am ET
gas per day and was expected to contribute about $25 million in EBITDA from those PDP volumes in 2017. Based on the current interest and the need by buyers to digest the recent and upcoming strong well results we continue to see with new wells in the area, we look forward to updating the market on the results of the second package in early 2017.
As noted during our Analyst Day presentation, our 2017 projected production guidance reiterated today has been adjusted for both the expected Devonian and Haynesville divestitures. So we kept our 2017 projected production guidance the same as previously stated back in August, despite the removal of expected net volumes of about 35 Bcf from these anticipated transactions.
With the continued volatility of both gas and oil prices, we are pleased that our hedge position for both the remainder of 2016 and 2017 is already fairly robust, particularly on the natural gas side. We will continue to monitor market conditions and may increase our positions in both gas and oil at the appropriate times. Our current hedge position is detailed in the slides we posted to our website this morning.
In closing, we are making meaningful strides in our debt reduction efforts and look to continue our progress in this area. We expect more success in the A&D market and expect to be able to discuss these transactions soon. As Doug noted, our production remains strong. When you look to start -- when to start to look through 2017 to 2018, our production rate only gets stronger, given our highly efficient capital program in 2017. That concludes my comments.
I will now turn the call over to the operator for questions.