Chesapeake Energy Corporation (NYSE:CHK) said its will reduce its capital spending for the current year by 20%. The oil and natural gas company estimated that its capital expenditures will be approximately between $5.2 billion to $5.6 billion this year.

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Strategic goals in place

Doug Lawler, CEO of Chesapeake Energy Corporation (NYSE:CHK) said, “The Chesapeake team worked diligently on several major initiatives designed to ensure that our processes and practices maximize returns from our exceptional asset base.”

According to him, “2013 was a transformational year for the company and its stakeholders.” He added that the company established specific strategic goals and metrics that will boost its top-quartile operational, financial and shareholder return performance.

Furthermore, Lawler emphasized, “Disciplined capital allocation, budget and cost leadership programs are now in place, and I am very excited about Chesapeake Energy Corporation (NYSE:CHK)’s opportunity to become a differential investment and industry partner of choice in 2014 and beyond.”

Chesapeake’s production outlook

In terms of production, Chesapeake Energy Corporation (NYSE:CHK) projected a growth rate in the range of 8% to 10%, adjusted for asset sales. According to the company, its oil production is expected to grow 8% to 12%, natural gas liquids production is estimated to go up 44% to 49%, and its natural gas production growth will rise 2% to 4% this year.

Chesapeake Energy Corporation (NYSE:CHK) said its average daily production rate will be around 680- 695 thousand barrels of oil equivalent (mboe).

The company said its estimated per unit production will decline 10% while its G&A expenses will drop 25% year-over-year.

Chesapeake Energy Corporation (NYSE:CHK) said its target long-term production growth per debt-adjusted share is between 5% to 9% annually. The oil and natural gas company plans to spud approximately 1,100 gross operated wells, and to connect around 1,300 gross operated wells to sales this year.

“Our improving capital efficiency has made it possible for us to forecast similar adjusted production growth in 2014 compared to 2013, despite a substantial reduction in capital expenditures and approximately 8% fewer operated wells expected to be connected to sales,” said Lawler.

Chesapeake Energy Corporation (NYSE:CHK) recently appointed Miles Tolbert, former Secretary of the Environment for the state of Oklahoma to serve as associate general counsel-Environment, Health and Safety (EH&S) effective February 17.

He will oversee the EH&S legal group and will report to Jim Webb, executive vice president – general counsel & corporate secretary of the company.