November 2012 Investor Presentation NOVEMBER 2012 INVESTOR PRESENTATION
November 2012 Investor Presentation 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…
November 2012 Investor Presentation IMPORTANT 2012 DEVELOPMENTS January 2012: Strategy shift from asset identification and capture to asset harvest; initiated in 2011 was fully under way March 2012: Natural gas prices dropped…
November 2012 Investor Presentation CURRENT INITIATIVES Full transition to Harvest Strategy from Asset Capture Strategy Selling excess leasehold Drilling in the core of the core of plays = yielding the best returns Shift to…
November 2012 Investor Presentation 3Q 12 EARNINGS SUMMARY Production results 3Q 12 total production averaged 4.1 bcfe/d, up 24% YOY and 9% sequentially 3Q 12 liquids production of 143,000 bbls/d, up 51% YOY and 10% sequentially…
November 2012 Investor Presentation ONE OF THE BEST LIQUIDS GROWTH STORIES IN THE INDUSTRY U.S. Liquids Growth 3Q10 - 3Q12 Percentage Growth Absolute Growth Not just talk, results. CHKs 3Q12 organic daily liquids production…
November 2012 Investor Presentation PREMIER COLLECTION OF U.S. E&P ASSETS
November 2012 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 21.3 tcfe of proved reserves(1)…
November 2012 Investor Presentation THE PREMIER ONSHORE ASSET BASE 3Q'12 Net Nov-12 Daily Proved Leasehold Operated Play Type/Area Production Reserves ( 1 ) Acres ( 1 ) Rig Count Oil & NGL Plays: (mmcfe/d) (bcfe) Eagle Ford Shale…
November 2012 Investor Presentation AGGRESSIVE SHIFT OF CAPITAL TO LIQUIDS-RICH PLAYS HAS PAID OFF CHK's drilling cap-ex in 2012 is 15%/85% between natural gas plays and liquids-rich plays, respectively Expect to average 90…
November 2012 Investor Presentation CHKS NEAR TERM PRODUCTION GROWTH IS 100% LIQUIDS Permian Basin Sales 143,000 bbls/d in 3Q12 % Liquids 30,000 bbls/d in 1Q09 VPP 8 Curtailments Barnett Fayetteville coming back Total…
November 2012 Investor Presentation EAGLE FORD SHALE OVERVIEW CHK is the second-largest leasehold owner in the play with 490,000 net acres 441 gross operated producing wells Brought online 124 wells in 3Q 12 and have 233 wells…
November 2012 Investor Presentation UTICA SHALE OVERVIEW CHK Leasehold Operated Rigs CHKU Outline CHK/TOT JV Outline CHK is largest leasehold owner in the play with Producing wells Non-operated Rigs Industry Rigs WOC/WOPL…
November 2012 Investor Presentation MISSISSIPPI LIME OVERVIEW CHK Leasehold Operated Rigs Located in northern Oklahoma and southern Non-operated Rigs Industry Rigs Kansas, CHK is industrys largest leasehold owner in the play…
November 2012 Investor Presentation CLEVELAND AND TONKAWA OVERVIEW Tonkawa CHK Leasehold CHK owns largest position in combined Cleveland Operated Rigs CHK C-T Non-operated Rigs plays with 520,000 and 285,000 net Hogshooter…
November 2012 Investor Presentation POWDER RIVER BASIN NIOBRARA OVERVIEW CHK Leasehold Operated Rigs CHK was the early mover and has amassed the largest Industry Rigs leasehold position in the Southern Powder River Basin…
November 2012 Investor Presentation MARCELLUS SHALE CHK Leasehold CHK is largest leasehold owner in the play with 1.8 Operated Rigs mm net acres in the play Industry Rigs 1.5 mm net acres in northern dry gas portion…
November 2012 Investor Presentation FINANCIAL SUMMARY
November 2012 Investor Presentation 2012 AND 2013 OUTLOOK SUMMARY 2011 YE 2012E YE 2013E Production: Natural gas (bcf) 1,004 1,120 - 1,140 1,030 - 1,070 Oil (mbbls) 16,964 30,000 - 31,000 36,000 - 38,000 NGL (mbbls) 14,712…
November 2012 Investor Presentation 2012 FINANCIAL PROJECTIONS (1) As of 11/01/12 Outlook 3.50 (2) ( in mm; oil at 90 NYMEX) O/G revenue(3) 5,540 Ebitda 3,520 Operating cash flow(4) 3,780 Net income 330 Net income…
November 2012 Investor Presentation 2013 FINANCIAL PROJECTIONS (1) As of 11/01/12 Outlook ( in mm; oil at 90 NYMEX) 3.00 4.00 5.00 O/G revenue(2) 5,810 6,840 7,890 Ebitda 3,590 4,570 5,560 Operating cash flow(3) 3,890…
November 2012 Investor Presentation PRO FORMA DEBT MATURITY SCHEDULE (1) Sr. Debt and Term Loans: 12.6 Billion 4,271 Average Note Maturity: 5.5 years November 2012 Term Loans Due 2017 ( in MM) Bank credit facilities…
November 2012 Investor Presentation CHK HEDGING PROGRAM BEST IN INDUSTRY CHK has successfully locked in gains 25 of the past 27 quarters. Realized cash hedging gains since January 1, 2006 have been 8.8 billion, or 1.39 per mcfe…
November 2012 Investor Presentation HEDGING POSITION (1) Natural Gas Oil 4Q 2012 4Q 2012 3.06 99.14 NYMEX NYMEX 76% 76% 2013 2013 96.01 NYMEX 0% 69% 25 (1) Swap positions based on Outlook as of 11/1/2012
November 2012 Investor Presentation SUMMARY
November 2012 Investor Presentation VALUE OPPORTUNITY ( in millions except share price) Price per share 15.00 20.00 25.00 Fully diluted common shares 9/30/12(1) 772 772 772 Market capitalization 11,600 15,400 19,300 Plus:…
November 2012 Investor Presentation 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 long-term…
November 2012 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 Web…
November 2012 Investor Presentation APPENDIX
November 2012 Investor Presentation TOP 20 U.S. LIQUIDS PRODUCERS 2011 Reported 2011 Reported Daily U.S. Liquids Proved U.S. Proved U.S. U.S. U.S. U.S. Liquids Rigs Production ( 1) ( 2) 3Q'12 3Q'12 Liquids Liquids Liquids Rigs…
November 2012 Investor Presentation TOP 20 U.S. NATURAL GAS PRODUCERS 2011 Reported 2011 Reported Daily U.S. Natural Gas U.S. Net Proved U.S. U.S. U.S. U.S. Gas Rigs Production ( 1) ( 2) 3Q'12 3Q'12 Proved Natural Natural Gas Gas…
November 2012 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…
November 2012 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…
November 2012 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…
November 2012 Investor Presentation RECONCILIATION OF FINANCIAL PROJECTIONS As of 11/01/12 Outlook 2012 2013 ( in mm; oil at 90 NYMEX) 3.50(1) 3.00 4.00 5.00 O/G revenue (unhedged)(2) 5,190 5,640 6,690 7,740 (3) Hedging effect…
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