Chesapeake Energy Corporation (NYSE:CHK) Q3 2019 Earnings Conference Call Transcript
Nov 05, 2019 • 09:00 am ET
Good morning, and welcome to the Chesapeake Energy Third Quarter Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to Brad Sylvester. Please go ahead.
Bradley D. Sylvester
Good morning, and thank you for joining our call today to discuss Chesapeake's financial and operational results for the 2019 third quarter. Hopefully, you've had a chance to review our press release and the updated investor presentation that we posted on our website this morning. During this morning's call, we will be making forward-looking statements, which consist 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 and discussed in our earnings release today and in other SEC filings. Please recognize that, except 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 reference 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 can be found on our website and in the earnings release.
With me today on the call this morning are Doug Lawler, Nick Dell'Osso, and Frank Patterson. Doug will review our operational and financial results and then we will open up the teleconference up for Q&A.
So with that, thank you. And I will now turn the teleconference over to Doug.
Robert D. Lawler
Thank you, Brad, and good morning everyone. I'm pleased to share with you today Chesapeake Energy's third quarter performance highlights and to affirm our full year 2019 guidance range for production and capital expenditures. As well as share directional guidance regarding our 2020 capital program. Despite significant commodity price volatility Chesapeake continues to deliver higher margins and balance sheet improvement while positioning for sustainable free cash flow generation.
In the third quarter we achieved several notable milestones, highlighted by record production in the Brazos Valley asset, continued capital efficiency improvements is demonstrated by shorter cycle times, greater productivity and lower capex. Cash cost reductions were recognized on an absolute basis across G&A, LOE and GP&T is compared to the second quarter. As you will recall, we raised our full-year production, oil production guidance in the second quarter, and despite a few operational and timing challenges in the third quarter, we remain confident in delivering production and capital expenditures within our full year guidance range due to the balance and strength of our portfolio.
Turning to our assets, our progress continues in Brazos Valley. We set a new monthly production record in October of approximately 55,000 barrels of oil equivalent per day, including more than 40,000 barrels of oil per day, despite running one less rig in the 2018 program. Our capital efficiency improvements continued to deliver impressive