Chesapeake raises production outlook

OKLAHOMA CITY - Chesapeake Energy Corp. on Tuesday slightly raised oil and gas production forecasts for 2009 and 2010 and predicted a strong production boost in 2011.

The company also predicted smaller cash inflows this year but larger ones in 2010.

Chesapeake said in a regulatory filing it expects production this year to be 5 percent to 6 percent higher than in 2008, compared with an August forecast of 4 percent to 5 percent growth.

For 2010, the company expects production growth of 8 to 10 percent, up from 7 to 8 percent predicted in August. And in its first forecast for 2011, the company said production would rise 12 to 14 percent over 2010.

Chesapeake said it expects cash inflows this year of $5.3 billion to $5.6 billion, down from $5.8 billion to $6.2 billion predicted in August.

Net cash change will range between a decrease of $75 million and an increase of $325 million, compared with an August estimated increase of $525 million to $825 million.

For 2010, the company said net cash would increase between $275 million and $950 million, down from the August estimate of a net change of between $600 million and $1.28 billion.

Shares of Chesapeake rose 45 cents to $29.46.

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