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November 2011 Investor Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Nov 10, 2011 · 49 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. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 1
    November 2011 Investor Presentation
  2. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 2
    May 2011 2011 November Investor Presentation Investor Presentation Industry Leadership Leader in production Second-largest producer of U.S. natural gas and a Top 15 producer of U.S. liquids 3Q11 gas production of 2.8 bcf/d;…
  3. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 3
    May 2011 2011 November Investor Presentation Investor Presentation Best Assets in the Business Captured Americas largest natural gas and liquids resource base 17.7 tcfe of proved reserves at 9/30/11(1) 111 tcfe of risked unproved…
  4. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 4
    May 2011 2011 November Investor Presentation Investor Presentation What Are CHKs Key Goals for 11-12 Become the industrys leader in per share NAV growth, returns on capital and free cash flow generation by building a: Top 5 U.S.…
  5. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 5
    May 2011 2011 November Investor Presentation Investor Presentation What Happens if CHK Achieves its 5 Key Goals Adjusted ebitda increases by 75% in 2013 vs. 2010 to 9 billion(1) EV of 60-65 billion and MEV of 50-55 billion…
  6. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 6
    May 2011 2011 November Investor Presentation Investor Presentation What is CHKs Financial Plan for 2012 Operating cash flow should provide 6 billion in 2012(1) New JVs should generate 1 billion COS IPO, Frac Tech sale (30%) and…
  7. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 7
    May 2011 2011 November Investor Presentation Investor Presentation Utica Shale JV and Financial Investment Summary CHK has entered into letter of intent (LOI) with an undisclosed international major energy company through which the…
  8. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 8
    May 2011 2011 November Investor Presentation Investor Presentation Strong 3Q 11 Results Top-tier production growth 3Q 11 production averaged 3.3 bcfe/d; up 9% YOY and up 9% sequentially 3Q 11 liquids production of 94,000 bbls/d,…
  9. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 9
    May 2011 2011 November Investor Presentation Investor Presentation Relentlessly Focused on Per Share Growth, Accelerating From Here Production/Weighted Average Fully Diluted Share Proved Reserves/Fully Diluted Share 2.2 40…
  10. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 10
    May 2011 2011 November Investor Presentation Investor Presentation Growth Opportunity, Plus a Remarkable Value Opportunity for Investors (in millions) Price per share 30.00 35.00 40.00 Fully diluted common shares 766 766 766…
  11. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 11
    May 2011 2011 November Investor Presentation Investor Presentation CHK Net Asset Value Analysis 9/30/2011 - pro forma (1) NAV various NYMEX natural gas prices ( in millions, except per share data) 4.00 5.00 6.00 7.00 Proved…
  12. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 12
    May 2011 2011 November Investor Presentation Investor Presentation Three Transitions Underway for CHK and U.S. Natural Gas Industry In the next few years: Majority of U.S. natural gas producers will have completed their transition…
  13. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 13
    May 2011 2011 November Investor Presentation Investor Presentation Time to Get Bullish on Out Year Natural Gas Many reasons to be bullish on intermediate and long-term natural gas prices: U.S. natural gas producers are rapidly moving…
  14. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 14
    Best Assets in the Business
  15. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 15
    May 2011 2011 November Investor Presentation 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…
  16. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 16
    May 2011 2011 November Investor Presentation Investor Presentation CHKs Newest Major Discovery Liquids Rich Ohio Utica Shale Immature Began leasing in Ohio for Utica in mid-2010 now have: Oil Window Wet Gas Window 1.36 mm…
  17. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 17
    May 2011 2011 November Investor Presentation Investor Presentation Best E&P Drilling Inventory in the U.S. CHK Total Proved CHK CHK CHK CHK Reserves CHK CHK CHK Est. Risked Total Risked and Risked Unrisked Oct-11 Oct-11 CHK CHK…
  18. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 18
    May 2011 2011 November Investor Presentation Investor Presentation Aggressively Shifting Capital to Liquids-Rich Plays CHK continues to reduce drilling of natural gas Total Natural Gas Capex Total Liquids Capex 100% % of CHK…
  19. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 19
    May 2011 2011 November Investor Presentation Investor Presentation CHK Has Been Responsible for Nearly Half of U.S. Natural Gas Growth Over Past Decade U.S. natural gas production has increased 10 bcf/d from 54 bcf/d in 2000 to 64…
  20. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 20
    May 2011 2011 November Investor Presentation Investor Presentation CHKs Growth is Shifting to Liquids 800,000 80% NGL, boe/d Oil, boe/d 700,000 Associated Natural Gas from liquids plays, boe/d 70% Natural Gas from shale plays,…
  21. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 21
    May 2011 2011 November Investor Presentation Investor Presentation CHK Has Delivered One of the Very Best Liquids Volume Growth Stories in the Industry U.S. Liquids Growth 4Q '09 - 3Q '11 (mbbls/d) 80.0 40.0 (mbbls/d)…
  22. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 22
    May 2011 2011 November Investor Presentation Investor Presentation and One of the Very Best Percentage Liquids Growth Stories in the Industry U.S. Liquids Growth 4Q '09 - 3Q '11 (%) 350% 300% 250% 200% 150% 100% 50%…
  23. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 23
    May 2011 2011 November Investor Presentation Investor Presentation Chesapeake Oilfield Services, L.L.C. Chesapeake Oilfield Services, L.L.C. strategic advantages: CHKs in-house service companies provide premium services and…
  24. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 24
    Relentlessly Focused on Strong Financial Performance
  25. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 25
    May 2011 2011 November Investor Presentation Investor Presentation Off to a Fast Start Implementing the 30/25 Plan Announced an industry JV letter of intent and a financial transaction in the Utica shale combining for net proceeds…
  26. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 26
    May 2011 2011 November Investor Presentation Investor Presentation Case Study on CHKs Major JVs and Shale Plays (1) ( billions) Capital Invested Historical cost of buying acreage (19.0) Historical cost of drilling wells…
  27. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 27
    May 2011 2011 November Investor Presentation Investor Presentation 2011 Financial Projections at Various Natural Gas Prices ( in millions; oil at 92.84 NYMEX) 4.00 5.00 6.00 7.00 O/G revenue (unhedged) 1,172 bcfe (1) 4,960 5,050…
  28. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 28
    May 2011 2011 November Investor Presentation Investor Presentation 2012 Financial Projections at Various Natural Gas Prices ( in millions; oil at 100 NYMEX) 4.00 5.00 6.00 7.00 O/G revenue (unhedged) 1,350 bcfe (1) 7,050 8,070 9,090…
  29. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 29
    May 2011 2011 November Investor Presentation Investor Presentation 2013 Financial Projections at Various Natural Gas Prices ( in millions; oil at 100 NYMEX) 4.00 5.00 6.00 7.00 O/G revenue (unhedged) 1,484 bcfe (1) 8,860 9,900…
  30. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 30
    May 2011 2011 November Investor Presentation Investor Presentation CHK Hedging Since 1Q 06: 8.1 Billion of Realized Gains Best in Industry, by Far Quarterly Realized Gains and Losses 1Q '06 - 3Q '11 800 4.00 600 3.00 Realized…
  31. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 31
    May 2011 2011 November Investor Presentation Investor Presentation Senior Note Maturity Schedule (1) 2,500 CHK Total Senior Notes: 8.7 billion 2,291(2) Average Maturity: 6.4 years Average Interest Rate: 6.25% 2,000 1,800…
  32. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 32
    May 2011 2011 November Investor Presentation Investor Presentation Dont Forget About These Big Assets (1) CHK has invested in a variety of other assets: drilling rigs and other service equipment, various midstream gathering and…
  33. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 33
    Summary
  34. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 34
    May 2011 2011 November Investor Presentation Investor Presentation Summary 2011-12s 30/25 Plan Increase production by 30% net of asset sales Reduce long-term debt by 25% - well on our way with BHP deal closed and 2.0 billion debt…
  35. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 35
    May 2011 2011 November Investor Presentation Investor Presentation Corporate Information Corporate Contacts: Chesapeake Headquarters Jeffrey L. Mobley, CFA 6100 N. Western Avenue Senior Vice President Oklahoma City, OK 73118…
  36. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 36
    Appendix
  37. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 37
    May 2011 2011 November Investor Presentation Investor Presentation Top Ten Natural Gas Producing Nations 70 60 50 40 BCF/D 30 20 10 0 United Russia Canada Iran Qatar Norway China Saudi Indonesia Algeria States…
  38. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 38
    May 2011 2011 November Investor Presentation Investor Presentation Top 20 U.S. Natural Gas Producers Daily U.S. Natural Gas 2010 Reported Proved U.S. U.S. U.S. U.S. Gas Rigs (1)(2) Production 3Q'11 3Q'11 U.S. Net Natural Gas Gas…
  39. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 39
    May 2011 2011 November Investor Presentation Investor Presentation Top 20 U.S. Liquids Producers Daily U.S. Liquids 2010 Reported Proved U.S. U.S. U.S. U.S. Liquids Rigs (1)(2) Production 3Q'11 3Q'11 U.S. Net Liquids Liquids Rigs…
  40. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 40
    May 2011 2011 November Investor Presentation Investor Presentation Clean Energy Fuels Corp. LNG Fueling Infrastructure CHK has agreed to invest 150 million in newly issued convertible debt of Clean Energy Fuels Corp (Nasdaq: CLNE)…
  41. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 41
    May 2011 2011 November Investor Presentation Investor Presentation Americas Natural Gas Highway System Objectives Americas Natural Gas Highway System will deploy LNG fueling stations along every major interstate trucking corridor in…
  42. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 42
    May 2011 2011 November Investor Presentation Investor Presentation Natural Gas is Poised for Fast Transportation Market Penetration Reliable, attractively priced fuel Natural gas tied to domestic supply and demand factors as…
  43. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 43
    May 2011 2011 November Investor Presentation Investor Presentation Americas Natural Gas Highway September 2011 Actual First Station Completed: Baytown, TX Source: Clean Energy Fuels Corporation 43
  44. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 44
    May 2011 2011 November Investor Presentation Investor Presentation Americas Natural Gas Highway December 2012 Projected Source: Clean Energy Fuels Corporation 44
  45. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 45
    May 2011 2011 November Investor Presentation Investor Presentation Green Gasoline Is On the Way Too Sundrop Fuels, Inc. is developing biobased green gasoline made from natural gas and cellulosic material: CHK has agreed to invest…
  46. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 46
    May 2011 2011 November Investor Presentation Investor Presentation Reconciliation to Operating Cash Flow and EBITDA ( in millions)(unaudited) (a) Operating cash flow represents net cash provided by operating activities before…
  47. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 47
    May 2011 2011 November Investor Presentation Investor Presentation Reconciliation of Adjusted EBITDA ( in millions)(unaudited) (a) Adjusted ebitda excludes certain items that management believes affect the comparability of…
  48. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 48
    May 2011 2011 November Investor Presentation 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…
  49. November 2011 Investor Presentation – Chesapeake Energy Corp – slide 49
    May 2011 2011 November Investor Presentation 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…

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