March 2012 Investor Presentation ion Eight Major 2011 Accomplishments Reduced long-term net debt by 25% per proved mcfe From 0.73/mcfe to 0.55/mcfe Reduced long-term net debt by 2.3 billion to 10.3 billion, or 18% Achieved more…
March 2012 Investor Presentation ion Strong Results in 4Q 11 Top-tier production growth 4Q 11 production averaged 3.6 bcfe/d; up 23% YOY and up 8% sequentially 4Q 11 liquids production of 106,000 bbls/d; up 76% YOY and 13%…
March 2012 Investor Presentation CHK Has Delivered Strong Operational ion and Financial Results For Years... (1) Production Proved Reserves 2,000 35,000 1,800 30,000 1,600 1,400 25,000 1,200 20,000 Bcfe…
March 2012 Investor Presentation and Also Strong Per Share Results ion While Also Decreasing Debt (1) Production/Weighted Average Fully Diluted Share Proved Reserves/Fully Diluted Share 2.6 45 mcfe/weighted avg. fully diluted…
Strategy Overview
March 2012 Investor Presentation ion CHKs Complex Business Strategy FOCUS: Assets only in the U.S. and only onshore Our footprint is geographically very compact Grow production and proved reserves organically through the drillbit…
March 2012 Investor Presentation What is CHK Doing in Response to ion Low Natural Gas Prices Reducing operated dry gas rigs to 24, from an average of 75 rigs used in 2011; a decline of 50 rigs 2012 net natural gas production…
March 2012 Investor Presentation Time to Get Bullish on Out Year ion Natural Gas Are You Serious Yes, many reasons to be bullish on intermediate and long-term natural gas prices despite warm winter and overwhelmingly negative…
Natural Gas: A Bright Future Ahead
March 2012 Investor Presentation 4 Cornerstones of Increased ion Natural Gas Demand Industrial Power Generation Transportation Exports Increased and diversified demand will help balance the U.S. natural gas market and create…
March 2012 Investor Presentation ion Industrial: Renaissance for American Manufacturing Thanks to Abundant and Affordable U.S. Natural Gas and NGLs Rapidly increasing, domestic natural gas, natural gas liquids and oil production is…
March 2012 Investor Presentation ion Power: Big Opportunity for Fuel Switching Increase utilization of natural gas in the power generation sector 300,000 MWs of coal generation capacity 40,000 70,000 MWs likely retired by 2020 that…
March 2012 Investor Presentation Transportation: America Must ion Get Off the Oil Bottle U.S. consumes 23% of the worlds oil, 19 mm bbls/day, of which 11 mm bbls/day is imported By 2020, the IEA predicts world oil consumption…
March 2012 Investor Presentation ion How Will America Deal With 5/Gallon Gasoline or Diesel Current domestic and international challenges will likely keep upward pressure on the price of diesel in 2012 and beyond Will Israel Attack…
March 2012 Investor Presentation Natural Gas Vehicles Are An ion Answer To Rising Fuel Prices Price of Oil vs. Natural Gas If NYMEX is 4.00/mcf CNG will be 1.50/dge Forward Spread Pre-2005 Historical Spread 2005-2010 Avg.…
March 2012 Investor Presentation ion Transportation: The Market Is Moving Even If Federal Government Is Not New bi-fuel trucks and vans to be introduced by Ford, Chrysler (Dodge), and General Motors in 2012 New natural gas HD truck…
March 2012 Investor Presentation ion Transportation: Infrastructure is Growing Public CNG Fueling Coming to Stations Near You Cody Bakken Gammon Mowry Baxter/Mancos Antrim Marcellus Utica Mancos Niobrara Mulky New…
March 2012 Investor Presentation Americas Natural Gas Highway ion Complete in 2013 LNG truck fueling coast-to-coast and border-to-border 19
March 2012 Investor Presentation Top 10 Reasons Why Natural Gas Will ion Compete In the Transportation Sector 1. Price of oil vs. price of natural gas is simply too huge to ignore 2. Pricing fundamentals for CNG and LNG in relation…
March 2012 Investor Presentation ion Transportation: Theres Lots of Opportunities for Natural Gas Across the Board Transportation Market Daily Demand Market Size (Bcf) Market Opportunities LD Vehicles 45 General Motors, Chrysler,…
March 2012 Investor Presentation Exports: North American LNG Regas ion Facilities Considering Liquefaction Kitimat British Columbia, Canada Contemplated LNG export volumes are 10 bcf/day (Approved by Canadas National Energy…
March 2012 Investor Presentation What is CHK Doing Generally to ion Increase Natural Gas Demand As a producer of 9% of America's gross natural gas supply, CHK is deeply engaged in the effort to increase natural gas demand. The…
March 2012 Investor Presentation What is CHK Doing Specifically to ion Increase Natural Gas Demand With 160 mm from CHK, led a total 400 mm investment in Clean Energy Fuels (NYSE: CLNE) to help build out Americas Natural Gas…
March 2012 Investor Presentation ion CNG In A Box CHK working with GE to deploy more than 250 of GEs ecomagination- qualified CNG In A Box fueling systems across the U.S. through 2015 through CHKs affiliate, Peake Fuel Solutions…
CHK has the Best Assets in the U.S. E&P Business
March 2012 Investor Presentation ion marcellus utica haynesville eagle ford andarko basin powder river basin anadarko basin mississippi lime mississippian lime CHKs Operating Areas (Oil/Wet/Dry) (Oil/Wet/Dry) Low-risk,…
March 2012 Investor Presentation Aggressively Shifting Capital to ion Liquids-Rich Plays During 2011, CHK substantially reduced drilling 100% Total Natural Gas Capex Total Liquids Capex % of CHK Operated Drilling and…
March 2012 Investor Presentation ion CHKs Growth is Shifting to Liquids 800,000 40% NGL Targeting 250,000 bbls/d average in 2015 Oil 700,000 Associated natural gas from liquids plays 200,000 bbls/d average in 2013 Natural gas…
March 2012 Investor Presentation ion CHK Has Been Responsible for 30% of U.S. Natural Gas Growth Over Past Five Years U.S. Lower 48 marketed natural gas production has increased 14 bcf/d from 53 bcf/d in 2006 to 67 bcf/d in 2011…
Financial Summary
March 2012 Investor Presentation ion 2012 and 2013 Outlook Summary 2011 YE 2012E YE 2013E Production Liquids (mbbls) 31,676 53,000 - 57,000 74,000 - 78,000 Natural gas (bcf) 1,004 950 - 990 1,020 - 1,060 Natural gas equivalent…
March 2012 Investor Presentation 2012 Financial Projections at ion Various Natural Gas Prices ( in millions; oil at 100 NYMEX) 3.00 4.00 5.00 6.00 O/G revenue (unhedged) 1,300 bcfe (1) 5,960 6,760 7,580 8,380 Hedging effect(2)…
March 2012 Investor Presentation 2013 Financial Projections at ion Various Natural Gas Prices ( in millions; oil at 100 NYMEX) 3.00 4.00 5.00 6.00 O/G revenue (unhedged) 1,496 bcfe (1) 8,020 9,060 10,100 11,140 (2) Hedging…
March 2012 Investor Presentation ion 2012 Financial Plan Update Anticipate total cash proceeds of 10-12 billion from asset monetizations during the year CHK expects to close on two monetizations in March 2012 for 2 billion VPP 10 on…
March 2012 Investor Presentation ion Cash Flow Summary YE 2012E YE 2013E Operating cash flow (mm) (1)(2) 4,500 - 5,200 7,500 - 8,500 Well costs on proved properties (6,000 - 6,500) (6,500 - 7,500) Well costs on unproved properties…
March 2012 Investor Presentation ion CHK Hedging Since 1Q 06: 8.4 Billion of Realized Gains Best in Industry, by Far Quarterly Realized Gains and Losses 1Q '06 - 4Q '11 800 4.00 Realized Gains/Losses ( in millions) 600 3.00…
March 2012 Investor Presentation ion Hedging Position (1) Natural Gas Liquids % of % of NYMEX NYMEX Forecasted Forecasted Natural Gas Oil WTI Production Production 2012 --- --- 43% 102.48 2013 --- --- 5% 102.59…
March 2012 Investor Presentation Pro Forma Senior Note ion Maturity Schedule (1) 2,500 Total Senior Notes: 10.6 billion 2,275(2) Average Maturity: 6.4 years 2,000 1,950 1,800 1,660(2) 1,489(2) 1,500 Bank credit…
March 2012 Investor Presentation ion Strong NAV Per Share Growth in the Past Will Continue in 2012 (Based on constant pricing) ( in mm except per share data) 2006 2007 2008 2009 2010 2011 Proved reserves at PV10 (4.50/mcf &…
March 2012 Investor Presentation Remarkable Value Opportunity ion for Todays Investors (in millions except share price) Price per share 25.00 30.00 35.00 Fully diluted common shares 12/31/11 766 766 766 Market capitalization…
March 2012 Investor Presentation ion Escaping the Gravitational Pull of Weakening Natural Gas Prices Not Easy, But We Will Do It 150 CHK NYMEX Natural Gas(1) (1) NYMEX Oil Dow Jones Index Oil 120 DJIA Normalized 90 CHK…
March 2012 Investor Presentation ion Summary 25/25 Plan for 2011 - 2012 Increase production by 25% net of asset sales and reduce long-term debt by 25% Achieved 72% of our debt reduction target and 60% of our original production…
March 2012 Investor Presentation ion Corporate Information Corporate Contacts: Chesapeake Headquarters Jeffrey L. Mobley, CFA 6100 N. Western Avenue Senior Vice President Oklahoma City, OK 73118 Investor Relations and Research…
March 2012 Investor Presentation Reconciliation to Operating Cash Flow ion and EBITDA ( in millions)(unaudited) (a) Operating cash flow represents net cash provided by operating activities before changes in assets and…
March 2012 Investor Presentation ion Reconciliation of Adjusted EBITDA ( in millions)(unaudited) (a) Adjusted ebitda excludes certain items that management believes affect the comparability of operating results. The company…
March 2012 Investor Presentation Reconciliation of Adjusted Net Income ion Available to Common Stockholders ( in millions, except per-share data)(unaudited) (a) Adjusted net income available to common stockholders and adjusted…
March 2012 Investor Presentation Certain Reserve & Production ion Information The Securities and Exchange Commission requires natural gas and oil companies, in filings made with the SEC, to disclose proved reserves, which are…
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