By Liz Hampton
(Reuters) - U.S. shale producer Chesapeake Energy Corp (NYSE:CHK) on Wednesday said it was increasing its 2021 total oil production forecast to between 24.5 million and 26.5 million barrels, a jump of 1 million barrels from earlier guidance.
The uptick in output is largely the result of lower base production declines, the company said. It expects to produce between 20 million and 22 million barrels next year, according to a presentation.
Shares of Chesapeake were up about 0.8% in afternoon trading to $66.20. Benchmark U.S. crude futures were off about 3.6% to $80.88 a barrel.
Oklahoma City, Oklahoma-based Chesapeake anticipates running roughly the same number of rigs next year, with plans to operate one to three rigs in south Texas next year, and two to three rigs in Appalachia, according to the presentation. The company will run five to six active rigs at its Gulf Coast operations, the company said.
Rival Devon Energy Corp (NYSE:DVN)'s third quarter production volumes came in 5% above guidance, the company said this week. Both Chesapeake and Devon said they were able to lift production without raising spending, heeding calls from investors to focus on returns over growth.
Executives for Devon warned the industry would continue to bump into rising prices for goods and services and that it had baked up to 15% inflation into its financial projections for its exploration and production operations.
Shares of Devon were up 0.23% on Wednesday afternoon at $42.08.