Chesapeake's Q2’24 earnings presentation reaffirms the SynMax TIL monitoring inventories which show that the operator is on track for their 2024 delayed TIL plans. The operator reported an inventory of 46 DTILs for the quarter ending 6/30/24. This compares to the SynMax DTIL inventory of 49 for the same period.
Screenshot of CHKs Q2'24 earnings presentation showing DTIL inventory as of 6/30.
Why the difference?
The difference of three wells likely comes down to wellpad 475415 a NE PA pad containing seven wells. Looking at our satellite data it appears that Chesapeake fracked these wells in two batches, one group of four ending just before the end of the quarter and one group of three immediately after. After accounting for this event, our DTIL inventory matches CHKs disclosure exactly.
Regional breakout
The operator's DTIL inventory remains heavily weighted to the northeast with 1.11 bcf/d of initial productive capacity out of a total of 1.44 bcf/d, or 78%, being held in the northeast, primarily NE PA.
When will they TIL?
While CHK has not explicitly promised any particular plan for bringing these wells into service, we expect them to TIL these wells in November as futures prices become more favorable and local demand frees up production capacity in the region. We expect CHK to remain on target according to their Q4’23 earnings presentation where they promised investors a DTIL inventory of 80 wells for Q4’24.
Screenshot of CHKs Q4'23 earnings presentation where they outline their DTIL plan.