US gas giant Chesapeake Energy raised its natural gas production forecast for this year and next year today and said it planned to spend more on drilling.

The company said it expected production to rise 5% to 6% this year, compared with its prior forecast for an increase of 4% to 5%.

For next year, Chesapeake expects production to increase by 8% to 10%, compared with its August forecast of 7% to 8%, according to a filing with the US Securities and Exchange Commission.

Chesapeake expects to spend $3.15 billion to $3.35 billion on drilling this year, up from its August forecast of $3 billion to $3.2 billion.

For next year, exploration spending is expected to increase to as much as $4.7 billion.

The outlook was provided ahead of the company's annual meeting with investors tomorrow.