Chesapeake Energy announced year end results and revealed plans to reduce spending by $200 million in 2016.

Related: Chesapeake Seeks Change of Venue in Royalty Cases

In an earnings call this morning, Chesapeake Energy executives discussed how they made 'significant' progress in 2015 with average production of approximately 679,200 boe per day, an increase of 8% year over year. The company reported a net loss of $0.20 per fully diluted share and 2015 adjusted ebitda of $2.385 billion

Cost cuts were strategic in 2015 with the company highlighting that they reduced production costs on a per barrel of oil equivalent by 10% compared to 2014 plus reduced general and administrative costs per barrel oil equivalent by 24% in 2015.

Moving forward for 2016, Chesapeake has planned 2016 total capital expenditures ranging from $1.3 to $1.8 billion, approximately 57% lower than 2015 levels

Eagle Ford Operations

Chesapeake has 1.1 billion boe of net recoverable resources in the Eagle Ford and runs approximately 20 rigs and six hydraulic fracturing crews in the play. Hihglights for 2015 include:

• Production averaged approximately 97 thousand barrels of oil equivalent (mboe) per day (210 gross operated mboe per day) during the 2015 fourth quarter (10% decrease)
• Average completed well costs (through October) are $5.4 million ($5.9 million in 2014)
• Average completed lateral length of 6,250 feet and 23 frac stages (5,850 feet and 18 frac stages in 2014)
• 18 wells placed on production during Q4, compared to 123 wells in the 2014 Q4
• Plans to place approximately 170 to 180 wells on production in 2016
• The operated rig count in the Eagle Ford averaged three rigs in the 2015 fourth quarter, and the company anticipates releasing all operated rigs in the area by June

Read more at chk.com