Shares of Chesapeake Energy Corp. CHK, -2.78% rose 2.6% in premarket trading Wednesday, to bounce off the previous session’s 26-year low, after the oil and gas company provided a preliminary fourth-quarter production update. The company said its average estimated equivalent production of 476,000 to 478,000 barrels of oil equivalent (boe) per day, up from average daily production of 464,000 boe, but below the FactSet consensus of 484,300 boe. The average estimated oil production range is 125,000 to 126,000 barrels of oil per day. Chesapeake said it eliminated $900 million in debt, reduced expenses for gathering, processing, transportation and other general expenses by over $335 million and that it had $1.4 billion of liquidity available as of Dec. 31. “Our strong results in the fourth quarter have continued into early 2020 and are setting the foundation for the company to reach free cash flow this year,” said Chief Executive Doug Lawler. The stock, which closed Wednesday at 51.82 cents, the lowest level since January 1994, has plunged 64.8% over the past three months through Tuesday, while the SPDR Energy Select Sector ETF XLE, +0.45% has slipped 6.9% and the S&P 500 SPX, +1.01% has rallied 7.9%.