Wed Feb 25, 2015 7:39am EST

Chesapeake Energy Corp (CHK.N) on Wednesday said it would slash its 2015 spending and rig count in response to low crude oil prices and reported a fourth-quarter profit that fell short of Wall Street expectations.

Crude prices have slumped more than 50 percent since June as the global oil market remains over-supplied in a time of waning demand so exploration and production companies have made deep cuts to budgets to conserve cash.

Chesapeake said it expects total capital expenditures of $4 billion to $4.5 billion this year, down from $6.7 billion in 2014.

The Oklahoma City, Oklahoma company also said it plans to operate only 35 to 45 rigs this year, the lowest number since 2004 and down from an average of 64 rigs in 2014.

Even with sharp cuts to capital expenditures and Chesapeake's rig count, oil and gas production for the year is forecast to grow 3 percent to 5 percent. In 2014, oil and gas output grew 9 percent to an average of 706,000 barrels oil equivalent per day (boed).

Chesapeake reported a profit of $586 million, or 81 cents per share, compared with a loss of $159 million or 24 cents per share in the same period a year earlier.

Excluding gains related to hedging, Chesapeake had a profit of 11 cents per share. Analysts on average had expected a profit of 24 cents per share, according to Thomson Reuters I/B/E/S.

Shares of Chesapeake fell to $19.25 in premarket trading, down from a New York Stock Exchange close of $19.88.