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Should Companies in the Utica Be Disappointed by These Numbers?

By Tyler Crowe - Jan 17, 2014 at 10:03AM

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So far, the Utica shale formation is turning out to be more natural gas heavy than many had hoped, should that turn you away from heavy hitters like Chesapeake Energy and Gulfport Energy

The Utica shale formation was supposed to be "the best thing to hit Ohio since the plow." Or at least that what former Chesapeake Energy (CHKA.Q) CEO Aubrey McClendon thought. Based on the recent numbers from the Ohio Department of Natural Resources, though, it may not be as spectacular as many had hoped. Recent well data shows that wells in the region are producing about 82% natural gas. This may not sound like a huge deal, but it could be discouraging for big Utica players like Chespeake, Gulfport Energy (GPOR), Magnum Hunter Resources (NYSE: MHR), and Antero Resources (AR 4.19%) that were hoping to find a considerable amount more liquids in the region than its Pennsylvainia counterpart the Marcellus shale.

Tune into the video below to find out why the numbers in the Utica may not be as encouraging as some might have hoped and why only 25% of the wells that have been drilled are actually producing oil and gas today.

Fool contributor Aimee Duffy has no position in any stocks mentioned. Fool contributor Tyler Crowe has no position in any stocks mentioned. You can follow them on Twitter @TMFDuffy and @TylerCroweFool, respectively. 

The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Chesapeake Energy Corporation Stock Quote
Chesapeake Energy Corporation
CHKA.Q
Hess Corporation Stock Quote
Hess Corporation
HES
$110.88 (-0.52%) $0.58
Gulfport Energy Corporation Stock Quote
Gulfport Energy Corporation
GPOR
Antero Resources Corporation Stock Quote
Antero Resources Corporation
AR
$40.55 (4.19%) $1.63

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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