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BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp

Chesapeake Energy Corp · Nov 13, 2012 · 44 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 1
    BANK OF AMERICA MERRILL LYNCH 2012 GLOBAL ENERGY CONFERENCE AUBREY K. MCCLENDON CHIEF EXECUTIVE OFFICER NOVEMBER 13, 2012 MIAMI, FL
  2. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 2
    CHESAPEAKE IS THE ORIGINAL UNCONVENTIONAL COMPANY FOUNDED IN 1989 TO UTILIZE HORIZONTAL DRILLING TO EXPLORE UNCONVENTIONAL RESERVOIRS COVERING LARGE AREAS PREVIOUSLY UNDERDEVELOPED 3
  3. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 3
    INDUSTRY LEADERSHIP SECOND-LARGEST U.S. NATURAL GAS PRODUCER (NET), 5% LARGEST U.S. NATURAL GAS PRODUCER (GROSS), 10% 11TH LARGEST U.S. LIQUIDS PRODUCER 1 DRILLER OF HORIZONTAL SHALE WELLS IN THE WORLD LARGEST U.S. LEASEHOLD AND…
  4. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 4
    BEST ASSETS IN THE BUSINESS: 1 OR 2 POSITION IN 10 OF BEST 15 UNCONVENTIONAL FIELDS IN THE U.S. 21 TCFE PROVED RESERVES (1) 15 MM NET ACRES U.S. ONSHORE LEASEHOLD 30 MM ACRES OF 3D SEISMIC DATA (1) 21.3 tcfe based on…
  5. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 5
    FOCUSED ON 10 KEY PLAYS 6
  6. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 6
    AGGRESSIVE SHIFT TO LIQUIDS Oil (bbls/d) NGL (bbls/d) 250,000 200,000 (Bbls/d) 150,000 100,000 50,000 0 2009 2010 2011 2012E 2013E 2014E 2015E LIQUIDS PRODUCTION GROWTH PROJECTED TO INCREASE FROM 30,000 BBLS/D IN…
  7. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 7
    ONE OF THE BEST LIQUIDS GROWTH STORIES IN THE INDUSTRY U.S. LIQUIDS PRODUCTION GROWTH 3Q10 3Q12 PAST 24 MONTHS, BY PERCENTAGE 8
  8. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 8
    ONE OF THE BEST LIQUIDS GROWTH STORIES IN THE INDUSTRY U.S. LIQUIDS PRODUCTION GROWTH 3Q10 3Q12 PAST 24 MONTHS, BY VOLUME 9
  9. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 9
    CURRENT INITIATIVES COMPLETE ASSET BASE TRANSFORMATION TO BALANCE BETWEEN LIQUIDS AND NATURAL GAS COMPLETE STRATEGY TRANSITION FROM ASSET CAPTURE TO ASSET HARVEST COMPLETE ASSET SALES PROGRAM GOAL OF 17-19 BILLION IN 2012-13…
  10. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 10
    STATE OF NATURAL GAS MARKETS 11
  11. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 11
    in 2002 FLATLINED DOMESTIC PRODUCTION VOLATILE PRICES CAUSED BY WEATHER MERCHANT POWER AND RISING INTERNET USAGE DRIVING DEMAND FOR NATURAL GAS GENERATED ELECTRICAL POWER HIGHER LNG IMPORTS PROJECTED TO GROW TO MEET RESULTING…
  12. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 12
    in 2012 100-YEAR SUPPLY LOW, STABLE PRICES POWER, INDUSTRIAL AND TRANSPORTATION DEMAND RISING LNG EXPORTS PROJECTED TO GROW FOUNDATION OF AMERICAN INDUSTRIAL RENAISSANCE FOUNDATION FOR AMERICAN ENERGY INDEPENDENCE 13
  13. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 13
    HOW DID THIS HAPPEN SHALE GAS 14
  14. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 14
    BIG 5 NEW U.S. NATURAL GAS SHALE PLAYS ARE WORLD-CLASS DISCOVERIES 1,400 TOP 20 WORLD GAS FIELDS BY RECOVERABLE RESERVES 15
  15. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 15
    CHK HAS BEEN RESPONSIBLE FOR 30% OF U.S. NATURAL GAS GROWTH OVER PAST FIVE YEARS BUT SOON OUR NG PRODUCTION WILL BEGIN TO DECLINE, THIS WILL HELP RE-BALANCE NATURAL GAS MARKETS 16
  16. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 16
    MARKET-BASED RESPONSE TO LOW NATURAL GAS PRICES PRODUCERS ARE: SHIFTING RIGS TO LIQUIDS PLAYS ALLOWING DRY GAS PRODUCTION TO FALL STIMULATING DEMAND REVOLUTION 17
  17. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 17
    FACT: LOW NATURAL GAS PRICES PROVIDE 600 MILLION PER DAY IN ECONOMIC STIMULUS TO U.S. ECONOMY COMPARED TO PRICES IN EUROPE AND ASIA 18
  18. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 18
    BUT: OVER THE NEXT 10 YEARS WE ARE ON TREND TO EXPORT 4-5 TRILLION OF AMERICAN WEALTH TO IMPORT FOREIGN OIL 19
  19. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 19
    WHAT IF WE INVESTED THAT MONEY RIGHT HERE IN AMERICA TO PROMOTE U.S. SECURITY AND ECONOMIC GROWTH 20
  20. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 20
    PUTTING MORE U.S. NATURAL GAS TO WORK IN MANUFACTURING, UTILITIES AND TRANSPORTATION WILL CREATE AN ECONOMIC RENAISSANCE IN AMERICA AND HELP THE ENVIRONMENT WHILE WE ARE AT IT 21
  21. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 21
    NATURAL GAS NOW CHEAPER THAN COAL ACROSS THE U.S. 22
  22. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 22
    NATURAL GAS IS NO LONGER A BRIDGE FUEL IT SHOULD BE VIEWED AS BASE LOAD FUEL FOR DECADES TO COME 23
  23. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 23
    NEXT 5 YEARS SIGNIFICANT SHIFT IN THE COMPOSITION OF U.S. POWER GENERATION 24
  24. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 24
    NET ELECTRICITY GENERATION BY SOURCE COAL 36% NATURAL GAS 32% NUCLEAR 18% HYDRO 7% WIND 3% OTHER GAS 2% BIOMASS 1% PETROLEUM 1% THERMAL 0% SOLAR 0% 0% 10% 20% 30% 40% EIA September 2012 Monthly Energy Review 25
  25. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 25
    ESTIMATE: 75,000 90,000 MWS OF NEW NATURAL GAS-FIRED CAPACITY ADDED BY 2015 26
  26. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 26
    IF U.S. COULD INCREASE NATURAL GAS POWERED FLEET TO A LOAD FACTOR OF 50% 27
  27. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 27
    NATURAL GAS A WIN-WIN RELIABILITY FOR UTILITIES AFFORDABILITY FOR RATEPAYERS IMPROVED AIR QUALITY JOB GROWTH AND REVENUE GENERATION FOR COMMUNITIES 28
  28. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 28
    NATURAL GAS IS REVITALIZING AMERICA'S INDUSTRIAL SECTOR CREATING A MODERN DAY MANUFACTURING RENAISSANCE INCREASING AMERICAN JOBS 29
  29. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 29
    A GAME CHANGER FOR TRANSPORTATION 30
  30. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 30
    LEADING BY EXAMPLE FLEET CONVERSION TO CNG/LNG DRILLING RIG & PRESSURE PUMPING CONVERSIONS TO NG NG BUSSES AND REFUSE TRUCKS NG POWERED GENERATION INDUSTRIAL BOILERS AND FEEDSTOCK 31
  31. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 31
    CONVERTING CHKS FLEET VEHICLES AND DRILLING RIGS TO RUN ON CNG AND LNG WILL SAVE 250 MILLION ANNUALLY AND 125 MILLION GALLONS (3 MMBBLS) OF DIESEL FUEL 32
  32. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 32
    GREAT PARTNERS SO FAR MORE TO COME 33
  33. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 33
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  34. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 34
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  35. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 35
    AMERICAS NATURAL GAS HIGHWAY SYSTEM 36
  36. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 36
    70 CNG STATIONS IN OKLAHOMA AND GROWING 37
  37. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 37
    TRANSFORMING TRANSPORTATION CONSUMERS WIN BUSINESSES WIN INVESTORS WIN AMERICA WINS 38
  38. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 38
    U.S. CAN MOVE FROM ENERGY IMPORTER TO ENERGY EXPORTER 39
  39. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 39
    NATURAL GAS EXPORTS: BALANCE SUPPLY AND DEMAND KEEP U.S. RIG COUNTS AND EMPLOYMENT STEADY IMPROVE U.S. BALANCE OF TRADE 40
  40. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 40
    U.S. LNG EXPORT TERMINALS POTENTIAL EXPORT OF 10 BCF/D 41
  41. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 41
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  42. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 42
    SUMMARY 43
  43. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 43
    WHY INVEST IN CHK BEST ASSETS IN THE BUSINESS STRONG OPERATIONAL PERFORMANCE, PRODUCTION UP 24% YOY TARGETING CORE OF THE CORE IN ALL PLAYS GREATER PRODUCTION BALANCE REDUCING NET LT DEBT…
  44. BofA Merrill Lynch Global Energy Conference – Chesapeake Energy Corp – slide 44
    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 (405) 767-4763 Web site: www.chk.com…

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