Oklahoma-based Chesapeake Energy warned investors Monday to expect writedowns in its first quarter results.
The company said in a regulatory filing that weak oil prices have forced it to writedown the value of its oil and natural gas properties.
“Based on the first-day-of the-month prices we have received over the 11 months ended February 2015, we expect to have a material write-down in the carrying value of our oil and natural gas properties in the first quarter of 2015,” the company said.
The expected size of the writedown has not been disclosed.
The company trimmed its 2015 capital expenditure budget to between $4 billion to $4.5 billion, down from $6.7 billion spent during 2014.
Chesapeake also cut its operated 2015 rig count to between 30 to 35 rigs, down from its average 64 rigs last year.
The company reported $5.05 billion in fourth quarter revenue, an 11 percent year over year spike that beat analysts targets.
Chesapeake booked earnings of 11 cents per share in the fourth quarter, missing analysts expectations of 24 cents per share.
“We have taken and continue to take appropriate steps not only to weather the current difficult commodity price environment we face today, but to thrive in it,” Chesapeake CEO Dug Lawler said.