May 2011 Investor Presentation CHK Overview Second-largest producer of U.S. natural gas and a Top 15 producer of U.S. liquids 1Q11 natural gas production of 2.7 bcf/d, total production of 3.1 bcfe/d Most active driller in U.S. 156…
May 2011 Investor Presentation Strong 1Q 11 Results Top-tier production growth 1Q11 production averaged 3.107 bcfe/d; up 20% YOY, up 6% sequentially 1Q'11 production of oil and NGLs averaged 67,200 bbls/d; up 56% YOY and 9%…
May 2011 Investor Presentation CHKs 2011-12 25/25 Plan CHKs plan for the next two years is straightforward: Reduce long-term debt by 25%, through a combination of various asset monetizations and substantially reduced net leasehold…
May 2011 Investor Presentation Enormous Value Created Through JV Transactions More to Come in '11 CHK was early to recognize shale gas would become the biggest game changer in the past 50 years within the U.S. E&P industry Initiated…
May 2011 Investor Presentation JVs and Asset Monetizations Have Funded Leasehold Spend Drilling Carries Acquisition of Proved a nd Unproved Properties and Leasehold 15,000 Sale of Proved a nd Unproved Properties and Leasehold Net…
May 2011 Investor Presentation Case Study on CHKs Major JVs and Shale Plays (1) Capital Invested Historical cost of buying acreage (16.3) Historical cost of drilling wells (11.5) Capital Invested (27.8) Cash Inflows Cash…
May 2011 Investor Presentation CHKs Assets: Best in the Business
May 2011 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 9
May 2011 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 Apr-11 Apr-11 CHK CHK Drilling CHK Net Proved Unproved…
May 2011 Investor Presentation Tremendous Benefits of Shifting from Natural Gas to Liquids Shifting output from a product valued at 4/mcfe to one valued at 17/mcfe will drive per unit ebitda, operating cash flow, net income and…
May 2011 Investor Presentation CHK is Well Positioned to Become a Leading Liquids Producer CHK now owns leading positions in 11 of the Top 13 unconventional liquids-rich plays in the U.S. 1 in the Anadarko Basin (includes Granite…
May 2011 Investor Presentation Aggressively Shifting Capital to Liquids-Rich Plays CHK plans to reduce drilling of natural gas wells 100% Total Natural Gas Capex Total Liquids Capex in 2011, except for those required to HBP %…
May 2011 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 1Q'11 1Q'11 U.S. Net Natural Gas Gas Rigs Gas Rigs % Drilling vs. 4Q'10…
May 2011 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 1Q'11 1Q'11 U.S. Net Liquids Liquids Rigs Liquids Rigs % Drilling vs. 4Q'10…
May 2011 Investor Presentation CHK: Industry Leadership Since 1993 1 driller of wells in the U.S.; 156 rigs drilling out of 1,754 total U.S. land rigs, or 9%(1) 1 driller in the U.S. during the past 20 years; 11,500 wells 1 driller…
May 2011 Investor Presentation Financial Overview
May 2011 Investor Presentation Adding Proved Reserves and Growing Production Consistently at A Very Attractive Finding Cost From 2009 to 2012, CHK will have increased oil 25,000 Proved Reserves and natural gas proved reserves by…
May 2011 Investor Presentation CHK Proved Reserve Growth Should Be Unrivaled Over the Next Five Years 45 40 26 - 28 (2 - 4) 35 32 - 34 30 25 Tcfe 17.2 (1.2) 20 (3.8) 15.6 (6.9) 15 10 7.5 (4.4) 5 0 (1) YE '05…
May 2011 Investor Presentation CHK's Strategy Has Delivered Per Share Growth, Will Accelerate From Here Production/Weighted Average Fully Diluted Share Proved Reserves/Fully Diluted Share 1.8 30 mcfe/weighted avg. fully diluted…
May 2011 Investor Presentation 2011 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) 1,119 bcfe(1) 5,040 5,640 6,250 6,870 Hedging effect(2) 1,640 1,150…
May 2011 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) 1,304 bcfe(1) 6,590 7,570 8,550 9,530 Hedging effect(2) 150 (40)…
May 2011 Investor Presentation CHKs Natural Gas and(1)(2)Oil Hedge Positions for 2011-12 Assuming future settlements for natural gas prices of 4.50-5.50/mcf and for oil prices of 100/bbl in 2011-12, CHKs average natural gas and oil…
May 2011 Investor Presentation CHK Hedging Since Inception: 7.0 Billion of Realized Gains Best in Industry, by Far Quarterly Realized Gains and Losses 1Q'01 - 1Q'11 800 4.00 CHKs hedging program has 600 generated 7.0 billion in…
May 2011 Investor Presentation Sr. Note Maturity Schedule (1) 3,000 CHK Total Senior Notes: 8.75 billion Average Maturity: 6.9 years 2,500 2,317(2) 2,000 1,800 1,682(2) in MM 1,489(2) 1,500 4.0 billion bank…
May 2011 Investor Presentation CHK ServiceCo Information ServiceCo Strategic Advantages CHKs in-house service companies provide premium service and sales, but also serve as a hedge against oilfield inflation CHK has targeted…
May 2011 Investor Presentation Macro Discussion
May 2011 Investor Presentation Time to Get Bullish on Out-Year Gas Many reasons to be bullish on intermediate and long-term natural gas prices: Quickening momentum for CNG vehicles 4+ gasoline and diesel prices will cause the market…
May 2011 Investor Presentation Three Transitions Forthcoming for CHK and U.S. Natural Gas Industry In the next few years: Majority of U.S. natural gas producers will have completed transition from factories making 4/unit widgets to…
May 2011 Investor Presentation Summary
May 2011 Investor Presentation Dont Forget About These Other Assets (1) CHK has invested in a variety of other assets: drilling rigs and equipment, various midstream gathering and compression assets, securities of other companies…
May 2011 Investor Presentation CHK Net Asset Value Analysis March 31, 2011 (1) Proforma NAV various NYMEX natural gas prices ( in millions, except per share data) 4.00 5.00 6.00 7.00 Proved reserves (15.6 tcfe) 13,800 19,500…
May 2011 Investor Presentation Summary 2011-12s 25/25 Plan: The Catalyst Reduce long-term debt by 25% - well on our way with BHP deal closed and 2.0 billion debt tender completed Increase production by 25% Inflection Point on…
May 2011 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…
May 2011 Investor Presentation Reconciliation to 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 2011 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 2011 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 earnings…
May 2011 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 proved reserves, which are those…
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