Chesapeake -5% following disappointing production guidance

|About: Chesapeake Energy Corporation (CHK)|By:, SA News Editor

Chesapeake Energy (CHK -5%) trades sharply lower following disappointing production guidance and plans to cut 2014 capex by 20%.

In the conference call following the news, CHK said its average daily production during December was ~649K boe, well below its 2014 guidance range of 680K-695K; CHK expects Q4 2013 and Q1 2014 will mark its production low point and that it will see a significant Q/Q ramp-up beginning in Q2 (

Brean Capital says capital allocation remains the biggest question mark for CHK, and remains unconvinced CHK can truly compete for capital at a sub $5/Mcf gas price.

CHK's 2014 outlook.