May 2013 Investor Presentation MAY 2013 INVESTOR PRESENTATION
PHASES OF CHESAPEAKE Previous Strategy New play identification Asset capture HBP drilling Frequent funding requirements 3
The Path Forward Develop existing assets Operational excellence Capital efficiency Financial discipline 4
May 2013 Investor Presentation VALUE REALIZATION PHASE DEVELOP EXISTING ASSETS CAPITAL EFFICIENCY Focus on the core of the core Pad drilling efficiencies Improve liquids production mix Leverage first well investments Optimize…
May 2013 Investor Presentation 1Q13 FINANCIAL RESULTS (1) Includes unrestricted cash and borrowing availability under revolving credit facilities as of 3/31/2013 (2) Cash proceeds from asset sales transactions signed or closed…
May 2013 Investor Presentation 1Q13 OPERATIONAL RESULTS (1) Oil and NGL collectively referred to as liquids 7
May 2013 Investor Presentation PREMIER COLLECTION OF U.S. E&P ASSETS
May 2013 Investor Presentation FOCUSED ON 10 KEY PLAYS Low-risk, U.S. onshore asset base; not exposed to economic, geopolitical or technological risks internationally or in the Gulf of Mexico 19.6 tcfe of proved reserves(1) 4.0…
May 2013 Investor Presentation AGGRESSIVE SHIFT OF CAPITAL TO LIQUIDS-RICH PLAYS HAS PAID OFF Drilling and completion capex Average operated rig count 3.0 200 70% 70% CHK Liquids % of Total Realized Revenue 60% CHK Liquids…
May 2013 Investor Presentation OPTIMIZATION OF DRILLING AND COMPLETION CAPEX Combined drilling, completion and leasehold capex projected to decline 39% from 2012 2013E drilling and completion capex is projected to decline 32%…
May 2013 Investor Presentation 2013 DRILLING AND COMPLETION CAPEX ALLOCATION BY PLAY (1) Greater Anadarko Basin(2), 28% (1) Net of drilling carries (2) Greater Anadarko Basin includes: Mississippi Lime , Granite Washes,…
May 2013 Investor Presentation CHKS NEAR-TERM PROJECTED PRODUCTION GROWTH IS 100% LIQUIDS Permian Basin Sales 157,000 bbls/d in 1Q13 % Liquids 30,000 bbls/d in 1Q09 VPP 8 Fayetteville Barnett Sale and Total JV VPP 9…
May 2013 Investor Presentation EAGLE FORD SHALE 1Q13 daily net production of 75 mboe/d, up 225% YOY Liquids averaged 62 mboe/d, up 251% YOY Targeting exit rate at YE13 of 71 mboe/d of liquids and total production of 92 mboe/d…
May 2013 Investor Presentation CHK EAGLE FORD CORE ECONOMICS Pro Forma Type Curve Histogram of EURs(1) 570 MBOE Gross EUR Type Curve: Target EUR: 570 MBOE Processed IP Rate: 475 bo/d, Avg. EUR: 540 MBOE 712 mcf/d and 106 bbls…
May 2013 Investor Presentation UTICA SHALE 1Q13 daily net production of 60 mmcfe/d Targeting YE13 exit rate of 330 mmcfe/d Average peak daily rates of 13 wells that commenced first production during 1Q13 was 1,200 boe/d Drilled…
May 2013 Investor Presentation UTICA AND MARCELLUS SOUTH PROCESSING PLANTS (1) Nisource/Hilcorp - CHK Contracted Utica 200 mmcf/d CHK Contracted Marcellus Third-Party Facilities Kensington - ATEX Pipeline 200 mmcf/d CHK…
May 2013 Investor Presentation GREATER ANADARKO BASIN Focusing on five plays: Mississippi Lime, Granite Wash, Cleveland, Tonkawa and Hogshooter 1Q13 aggregate net production of 114 mboe/d, up 30% YOY and up 9% sequentially…
May 2013 Investor Presentation MARCELLUS SHALE Marcellus Shale: Industrys largest producer where CHK recently achieved gross operated milestone of 2 bcfe/d 1Q13 daily net production: Northern dry gas portion: 710 mmcfe/d, up 70%…
May 2013 Investor Presentation NORTHERN MARCELLUS CHK CORE OF THE CORE CRZO PA RDS SWN CRZO SWN SWN SWN COG COG Chief COG COG Chief SWN Seneca Seneca APC Seneca APC APC PGE PGE CHK leasehold Recently…
May 2013 Investor Presentation FINANCIAL SUMMARY
May 2013 Investor Presentation OUTLOOK SUMMARY 2011 2012 YE 2013E Production: Natural gas (bcf) 1,004 1,129 1,060 - 1,090 Oil (mbbls) 16,964 31,265 37,000 - 39,000 (1) NGL (mbbls) 14,712 17,615 23,000 - 25,000 Natural gas…
May 2013 Investor Presentation 2013 FINANCIAL PROJECTIONS (1) NYMEX Natural Gas Prices As of 5/1/2013 Outlook ( in mm; oil at 90 NYMEX) 3.00 4.00 5.00 O/G revenue(2) 6,190 6,900 7,620 Adjusted Ebitda 4,770 4,920 5,040…
May 2013 Investor Presentation PRO FORMA DEBT MATURITY SCHEDULE (1) Term Loan 4,269 Sr. Debt & Term Loan: 12.8 Billion Convertibles Average Maturity: 5.65 years Notes issued April 13 Avg. Interest Rate: 5.87% Other Sr. Notes…
May 2013 Investor Presentation IMPROVING METRICS (1) 1,800 Total Production 4.00 Net Cash Margin(2) 3.00 3.46 1,422 1,447 1,200 (/mcfe) (bcfe) 1,194 2.51 2.00 600 1.65 1.00 0 0.00 2011 2012 2013E 2011 2012…
May 2013 Investor Presentation SUMMARY
May 2013 Investor Presentation WHY INVEST IN CHK Best assets in the business amassed, now focused on greater shareholder returns from them Ongoing strategic transformation to a value realization phase Committed to reducing…
May 2013 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 Website:…
May 2013 Investor Presentation APPENDIX
May 2013 Investor Presentation RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS ( in millions, except per-share data)(unaudited) (a) Adjusted net income available to common stockholders and adjusted…
May 2013 Investor Presentation RECONCILIATION OF OPERATING CASH FLOW AND EBITDA ( in millions)(unaudited) (a) Operating cash flow represents net cash provided by operating activities before changes in assets and liabilities.…
May 2013 Investor Presentation RECONCILIATION OF ADJUSTED EBITDA ( in millions)(unaudited) (a) Adjusted ebitda excludes certain items that management believes affect the comparability of operating results. The company discloses…
May 2013 Investor Presentation RECONCILIATION OF OPERATING CASH FLOW AND EBITDA ( in millions)(unaudited) (a) Operating cash flow represents net cash provided by operating activities before changes in assets and liabilities.…
May 2013 Investor Presentation RECONCILIATION OF 2013 FINANCIAL PROJECTIONS: ADJUSTED EBITDA TO OPERATING CASH FLOW As of 5/1/2013 Outlook NYMEX Natural Gas Prices ( in mm; oil at 90 NYMEX) 3.00 4.00 5.00 O/G revenue (unhedged)…
May 2013 Investor Presentation RECONCILIATION OF 2013 FINANCIAL PROJECTIONS: OPERATING CASH FLOW TO ADJUSTED NET INCOME As of 5/1/2013 Outlook NYMEX Natural Gas Prices ( in mm; oil at 90 NYMEX) 3.00 4.00 5.00 Operating cash…
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