February 2011 Investor Presentation CHK Overview Second-largest producer of U.S. natural gas 4Q10 natural gas production of 2.6 bcf/d, total company production of 2.9 bcfe/d Most active driller in U.S. 154 operated rigs…
February 2011 Investor Presentation 2010: An Important Year of Transformation for CHK At YE 2009, we looked into the future and saw two significant emerging game changers An emerging ability to find and develop huge new…
February 2011 Investor Presentation What Did CHK Accomplish In 2010 CHK expects to deliver these results for 2010: Deliver ebitda, cash flow and net income of 4.9 billion, 4.6 billion and 1.8 billion(1) Acquire 5.0 billion (net…
February 2011 Investor Presentation CHKs 2011-12 25/25 Plan CHKs plan for the next two years is very straightforward: Reduce long-term debt by 25%, through a combination of substantially reduced net leasehold expenditures and…
February 2011 Investor Presentation CHK/CNOOC Joint Venture Summary: DJ and Powder River Basins CHK has sold a 33.3% interest in 800,000 net acres in the DJ and Powder River Basins to CNOOC International Limited for 1.3 billion or…
February 2011 Investor Presentation Tremendous Benefits of Shifting from Natural Gas to Liquids Shifting output from a product valued at 4/mcfe to one valued at 15/mcfe will drive per unit ebitda, cash flow, net income and overall…
February 2011 Investor Presentation JVs and Asset Monetizations Have Funded Leasehold Spend Drilling Carries Acquisition of Proved and Unproved Properties and Leasehold Sale of Proved and Unproved Properties and Leasehold 15,000…
February 2011 Investor Presentation What Have We Captured Potential Net Potential Net Unrisked Unrisked Resource Net Acres Partner Undrilled Wells (bcfe) Gas Shale Land Grab (2006-2009) Barnett Shale 215,000 Total 2,300 4,000…
February 2011 Investor Presentation CHK's Liquids Production at an Important Inflection Point CHK Liquids Production Profile 300 40% NGL, MBLPD Actual Forecast Oil, MBOPD % Liquid 35% 250 % of Equivalent Production…
February 2011 Investor Presentation And CHK Knows How to Ramp Up Production CHK Natural Gas Production Profile 3,500 Natural gas, mmcf/d (before production divestments) Net Natural Gas Production (mmcf/d) Natural gas, mmcf/d…
CHKs Assets: Best in the Business
February 2011 Investor Presentation CHKs Operating Areas Low-risk, U.S. onshore asset base; not exposed to economic, geopolitical or technological risks internationally or in the Gulf of Mexico 13
February 2011 Investor Presentation Aggressively Shifting Capital to Liquids-Rich Plays CHK plans to reduce drilling of natural gas wells 100% Total Natural Gas Capex Total Liquids Capex % of CHK Operated Drilling and…
February 2011 Investor Presentation Top 20 U.S. Natural Gas Producers Daily U.S. Natural Gas 2009 Reported Proved U.S. U.S. U.S. U.S. Gas Rigs Production (1)(2) 3Q'10 3Q'10 U.S. Net Natural Gas Gas Rigs Gas Rigs % Drilling vs.…
February 2011 Investor Presentation Top 20 U.S. Liquids Producers Daily U.S. Liquids 2009 Reported Proved U.S. U.S. U.S. U.S. Liquids Rigs Production (1)(2) 3Q'10 3Q'10 U.S. Net Liquids Liquids Rigs Liquids Rigs % Drilling vs.…
February 2011 Investor Presentation CHK Has Industrys Best JV Partnerships CHK/PXP July 2008 Haynesville Shale (Louisiana, Texas): 80%/20%; 550,000 net acres; 30,000 per net undeveloped acre; 3.16 billion; 50% cash/50% carry…
February 2011 Investor Presentation Enormous Value Created Through JV Transactions More to Come in '11 CHK was early to recognize shale gas would become the biggest game changer in the past 50 years within the U.S. natural gas…
Financial Overview
February 2011 Investor Presentation CHK's Strategy Has Delivered Per Share Growth, Will Accelerate From Here Production/Weighted Average Fully Diluted Share Proved Reserves (1)/Fully Diluted Share 1.8 30 mcfe/weighted avg fully…
February 2011 Investor Presentation 2011 Financial Projections at Various Natural Gas Prices ( in millions; oil at 85 NYMEX) 4.00 5.00 6.00 7.00 O/G revenue (unhedged) 1,140 bcfe (1) 4,940 5,870 6,810 7,750 Hedging effect(2) 1,850…
February 2011 Investor Presentation 2012 Financial Projections at Various Natural Gas Prices ( in millions; oil at 85 NYMEX) 4.00 5.00 6.00 7.00 O/G revenue (unhedged) 1,300 bcfe (1) 6,300 7,280 8,250 9,230 (2) Hedging effect 410…
February 2011 Investor Presentation More Liquids Plus Hedged Gas = 2011 Value Creation Expected At year-end 2009, CHK's financial projections had yet to recognize what the transition to more liquids would deliver to its…
February 2011 Investor Presentation Senior Note Maturity Schedule (1) 3,600 CHK Total Senior Notes: 9.7 billion 3,294(2) 3,200 Average Maturity: 7.0 years 2,800 2,400 2,152(2) 1,876(2) 1,900 in MM 2,000 1,600…
February 2011 Investor Presentation CHKs Natural Gas and Oil Hedge Positions for 2011-12 (1)(2) NYMEX NYMEX (3) (4) Natural Gas Swaps % Hedged Avg. Price Oil Swaps % Hedged Avg. Price 2011 96% 5.84 2011 5% 99.39 2012 17% 6.19…
February 2011 Investor Presentation CHK Hedging Since Inception: 6 Billion of Realized Gains Best in Industry, by Far Quarterly Realized Gains and Losses 1Q '01 - 3Q '10 800 4.00 CHKs hedging program has generated 6 billion in…
Summary
February 2011 Investor Presentation CHK: Industry Leadership Since 1993 1 driller of wells in the U.S.; 154 rigs drilling out of 1,671 total U.S. land rigs, or 9% 1 driller in the U.S. during the past 20 years; 11,000 wells 1…
February 2011 Investor Presentation Summary 2011-12s 25/25 Plan: The Catalyst Reduce long-term debt by 25% Increase production by 25% Inflection Point on Natural Gas to Liquids Transition Rapidly shifting from 90% gas to a more…
February 2011 Investor Presentation 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…
February 2011 Investor Presentation Certain Reserve & Production Information The Securities and Exchange Commission requires natural gas and oil companies, in filings made with the SEC, to disclose proved reserves, which are those…
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