Chesapeake Energy Corp. (NYSE: CHK) detailed its 2014 outlook and capital program Feb. 6. It plans to hold its capital expenditures between $5.2-$5.6 billion, a 20% decrease from the midpoint of the company’s 2013 capex, Chesapeake said.

“2013 was a transformational year for the company and its stakeholders. The Chesapeake team worked diligently on several major initiatives designed to ensure that our processes and practices maximize returns from our exceptional asset base. We have established specific strategic goals and metrics that we believe will drive us toward top-quartile operational, financial and shareholder return performance among our peers. Disciplined capital allocation, budget and cost leadership programs are now in place, and I am very excited about Chesapeake’s opportunity to become a differential investment and industry partner of choice in 2014 and beyond,” said CEO Doug Lawler.

Chesapeake expects year-over-year (Y/Y) production growth of 8%-10%, consisting of 8%-12% oil production growth, 44%-49% natural gas liquids (NGLs) production growth and 4%-6% natural gas production growth, the company said. The targeted 2%-4% production growth implies an average daily production rate of 680-695 thousand barrels of oil equivalent (MBOE), the company added. These projections are adjusted for 2013 asset sales, the company noted.

Roughly 1,100 gross operated wells will be spudded this year, the company said, adding that the number is “relatively unchanged” from 2013. Roughly 1,300 gross operated wells will be sold—almost 115 fewer wells than last year—the company said.

"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," Lawler said.

General and administrative expenses (G&A), along with per-unit production, should be lower in 2014, Chesapeake said.

G&A expenses, not including restructuring, should be $1.35 – $1.60 per barrel of oil equivalent (/BOE), the company said. This is down about 25% Y/Y from 2013’s G&A expense outlook midpoint, the company added. Production expenses should range from $4.25 – $4.75/BOE, the company said. This is down approximately 10% Y/Y from 2013’s production expense outlook midpoint, the company added.

Chesapeake Energy, based in Oklahoma City, is an oil and natural gas producer.