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March 2013 Investor Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Mar 10, 2013 · 36 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. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 1
    March 2013 Investor Presentation MARCH 2013 INVESTOR PRESENTATION
  2. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 2
    March 2013 Investor Presentation INDUSTRY LEADERSHIP 2nd largest U.S. natural gas producer (net), 4% of total Largest U.S. natural gas producer (gross), 9% of total 11th largest U.S. liquids (oil and NGL) producer 1 driller of…
  3. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 3
    March 2013 Investor Presentation 4Q 12 EARNINGS SUMMARY Production results 4Q 12 total production averaged 3.931 bcfe/d, up 9% YOY 4Q 12 liquids production of 147,500 bbls/d, up 39% YOY Oil production grew 69% YOY Liquids 23%…
  4. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 4
    March 2013 Investor Presentation CURRENT OBJECTIVES AND INITIATIVES Improving production mix towards more liquids Aiming for 27% liquids production growth in 2013 to reach 26% of total (1) production as liquids Reducing per…
  5. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 5
    March 2013 Investor Presentation PREMIER COLLECTION OF U.S. E&P ASSETS
  6. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 6
    March 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)…
  7. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 7
    March 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…
  8. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 8
    March 2013 Investor Presentation ONE OF THE BEST U.S. LIQUIDS GROWTH STORIES IN THE INDUSTRY YOY Percentage Growth YOY Absolute Growth MUR 107% PXP 78% MRO 60% SD 53% CLR 42% CHK 39% NBL 36% HESS 33% PXD 30% XEC 28% BHP…
  9. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 9
    March 2013 Investor Presentation CHKS NEAR-TERM PROJECTED PRODUCTION GROWTH IS 100% LIQUIDS Permian Basin Sales 147,500 bbls/d in 4Q12 % Liquids 30,000 bbls/d in 1Q09 VPP 8 Fayetteville Barnett Sale and Total JV VPP 9…
  10. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 10
    March 2013 Investor Presentation IMPORTANT PLAY DEVELOPMENTS Eagle Ford Shale: Key growth engine for CHK liquids production growth 4Q12 daily net production of 62.5 mboe/d, up 266% YOY, 20% sequentially Benefitting from premium…
  11. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 11
    March 2013 Investor Presentation IMPORTANT PLAY DEVELOPMENTS Mississippi Lime: Announced JV agreement with Sinopec Sinopec will purchase a 50% undivided interest in 850,000 net acres (425,000 net to Sinopec), 34 mboe/d of 4Q12…
  12. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 12
    March 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…
  13. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 13
    March 2013 Investor Presentation MARCELLUS NORTH ANTICIPATED PIPELINE INDUSTRY TAKEAWAY ADDITIONS Millennium + 0.4 bcf/d TENN. Gas Pipeline + 0.5 bcf/d + 0.6 bcf/d Industry Transco Takeaway Additions + 0.6 bcf/d…
  14. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 14
    March 2013 Investor Presentation FINANCIAL SUMMARY
  15. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 15
    March 2013 Investor Presentation 2013 DRILLING AND COMPLETION CAPEX ALLOCATION BY PLAY (1) (1) Net of drilling carries (2) Anadarko Basin includes Cleveland, Tonkawa Tight Sand, Mississippi Lime and Granite Washes…
  16. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 16
    March 2013 Investor Presentation OPTIMIZATION OF DRILLING AND COMPLETION CAPEX Combined capex on drilling, completion and leasehold projected to decline 39% from 2012 2013E drilling and completion capex is projected to decline…
  17. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 17
    March 2013 Investor Presentation OUTLOOK SUMMARY 2011 2012 YE 2013E Production: Natural gas (bcf) 1,004 1,129 1,030 - 1,070 Oil (mbbls) 16,964 31,265 36,000 - 38,000 (1) NGL (mbbls) 14,712 17,615 24,000 - 26,000 Natural gas…
  18. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 18
    March 2013 Investor Presentation 2013 FINANCIAL PROJECTIONS (1) As of 2/21/13 Outlook ( in mm; oil at 95 NYMEX) 3.00 4.00 5.00 O/G revenue(2) 6,040 7,090 8,140 Ebitda 4,330 4,860 5,360 Operating cash flow(3) 4,600 5,130…
  19. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 19
    March 2013 Investor Presentation DEBT MATURITY SCHEDULE (1) 4,282 Sr. Debt & Term Loan: 12.6 Billion Average Maturity: 5.3 years ( in MM) 1,950 1,800 Bank credit 1,660 facilities with 1,489 4.5 billion capacity…
  20. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 20
    March 2013 Investor Presentation SUMMARY
  21. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 21
    March 2013 Investor Presentation VALUE OPPORTUNITY ( in millions except share price) Price per share 15.00 20.00 25.00 Common shares 12/31/12 664 664 664 Market capitalization 10,000 13,300 16,600 Plus: long-term debt (net of…
  22. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 22
    March 2013 Investor Presentation WHY INVEST IN CHK Best assets in the business amassed, now delivering greater shareholder returns from them One of the top liquids growth stories in the industry Ongoing strategic transformation…
  23. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 23
    March 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…
  24. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 24
    March 2013 Investor Presentation APPENDIX
  25. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 25
    March 2013 Investor Presentation EAGLE FORD SHALE OVERVIEW Oil Window 485,000 net acres (2nd largest Wet Gas Window Dry Gas Window leasehold owner) 534 gross operated producing wells JJ Henry IX M 1H 1,275 boe/d Brought…
  26. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 26
    March 2013 Investor Presentation UTICA SHALE OVERVIEW 1.0 mm net acres (largest leasehold owner) Discovered play in 2010 Drilled a total of 184 wells in the Utica play 45 producing wells, 47 wells drilled, but WOPL, and 92…
  27. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 27
    March 2013 Investor Presentation MARCELLUS SHALE OVERVIEW Northern Marcellus CHK Leasehold Largest leasehold owner in the play with 1.8 mm Operated Rigs net acres Nonoperated Rigs 1.5 mm net acres in northern dry gas portion…
  28. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 28
    March 2013 Investor Presentation MISSISSIPPI LIME OVERVIEW CHK Leasehold 2 mm net acres (largest leasehold owner) Operated Rigs Non-operated Rigs Discovered horizontal play in 2007 AMI with Sinopec 273 horizontal producing…
  29. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 29
    March 2013 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) 4Q'12 4Q'12 Liquids Liquids Liquids Rigs…
  30. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 30
    March 2013 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) 4Q'12 4Q'12 Proved Natural Natural Gas Gas…
  31. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 31
    March 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.…
  32. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 32
    March 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…
  33. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 33
    March 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…
  34. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 34
    March 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.…
  35. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 35
    March 2013 Investor Presentation RECONCILIATION OF FINANCIAL PROJECTIONS: EBITDA TO OPERATING CASH FLOW As of 2/21/13 Outlook 2013 ( in mm; oil at 95 NYMEX) 3.00 4.00 5.00 O/G revenue (unhedged)(1) 6,040 7,090 8,140 Hedging…
  36. March 2013 Investor Presentation – Chesapeake Energy Corp – slide 36
    March 2013 Investor Presentation RECONCILIATION OF FINANCIAL PROJECTIONS: OPERATING CASH FLOW TO NET INCOME As of 2/21/13 Outlook 2013 ( in mm; oil at 95 NYMEX) 3.00 4.00 5.00 Operating cash flow (1 ) 4,600 5,130 5,630 Oil and…

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