July 2010 Investor Presentation CHK Overview One of the largest producers of U.S. natural gas 1Q10 natural gas production of 2.328 bcf/d Most active driller in U.S. CHK is responsible for 1 of 8 gas wells being drilled in the U.S.…
July 2010 Investor Presentation CHK Overview, Continued High quality natural gas shale and unconventional liquids U.S. asset base Natural gas shale plays: 2.7 mm net acres Marcellus, M ll H Haynesville, ill B Barnett, tt…
July 2010 Investor Presentation Strategic and Financial Plan Through a series of transactions over the next 24 months, CHK is planning to: Raise 5 billion Repay 3.5 billion of senior indebtedness Increase investment in…
July 2010 Investor Presentation CHKs 2010 - 2012 Objectives Deliver top of industry per-share growth metrics in production and proved resources Improve balance sheet and deliver investment grade metrics b YE 2012 by Deliver…
July 2010 Investor Presentation CHK Keeps Delivering Per Share Growth Production/Weighted Average Share Proved Reserves/Fully Diluted Share 1.8 25 age share 1.6 d share 1.4 20 12 1.2 mcfe/weighted avera mcfe/fully…
Asset Overview
July 2010 Investor Presentation CHKs Operating Areas CHK is transitioning from 92% natural gas in 2009 to a greater balance between natural gas and oil 8
July 2010 Investor Presentation Americas 1 Resource Base CHK is exceptionally well positioned for long- Net Acreage Drillsites term profitable growth 13.8 million acres 38,000 net drillsites Largest combined inventories of…
July 2010 Investor Presentation Big Oil on the Way to CHK Started transition in early 2008 Announced discovery of Colony Granite Wash play Disclosed new unconventional oil plays Quietly built leasehold positions in unconventional…
July 2010 Investor Presentation CHKs Drilling Inventory Total Proved Reserves Est. Risked Est. Avg. Total Risked and Risked Unrisked May-10 May-10 CHK CHK Drilling Net Reserves Proved Unproved Unproved Unproved Daily Operated…
July 2010 Investor Presentation Marcellus Shale Overview The Marcellus Shale play is likely to become one of the two largest gas fields in the U.S. (Haynesville the Prospective Area = 15 Million Acres other) James Barrett 2H…
July 2010 Investor Presentation Haynesville Shale Overview CHK discovered in 2007; the Haynesville Shale is Prospective Area = 3.0 Million Acres likely to become one of the two largest natural gas fields in the U.S. (Marcellus…
July 2010 Investor Presentation Bossier Shale Overview CHK is the largest leasehold owner in the play Bossier Shale Prospective Area = 1.0 Million Acres CHK currently owns 185,000 net acres of leasehold prospective for Bossier…
July 2010 Investor Presentation Barnett Shale Overview The Barnett Shale is currently the largest natural gas Prospective Area = 1.5 Million Acres producing field in the U.S. and is producing 40% of all shale gas in the U.S.…
July 2010 Investor Presentation Fayetteville Shale Overview CHK is the second-largest producer in the Fayetteville Shale and the second-largest Prospective Area = 1.7 Million Acres leasehold owner in the Core area of the play…
July 2010 Investor Presentation Greater Granite Wash Overview OK CHK Op Rigs Texas Panhandle Granite Wash CHK Non-Op Rigs Colony Granite TX Industry Rigs Wash CHK Acreage 70miles Young 303H Peak Rate: 20.9mmcf and…
July 2010 Investor Presentation Eagle Ford Shale - Overview CHK began leasing in August 2009 and has since captured a Top-2 position in the industry with 500,000 net acres of leasehold Focused leasehold position in oil and wet…
Financial Overview
July 2010 Investor Presentation 2010 Financial Projections at Various Natural Gas Prices As of 5/4/10 Outlook ( in millions; oil at 80.00 NYMEX) 5.00 6.00 7.00 8.00 9.00 (1) O/G revenue (unhedged) 986 bcfe 4,710 5,130 5,560 5,980…
July 2010 Investor Presentation 2011 Financial Projections at Various Natural Gas Prices As of 5/4/10 Outlook ( in millions; oil at 80.00 NYMEX) 5.00 6.00 7.00 8.00 9.00 (1) O/G revenue (unhedged) 1,159 bcfe 5,870 6,700 7,520 8,350…
July 2010 Investor Presentation CHKs Natural Gas and Oil Hedge Positions for 2010-2011(1)(2) NYMEX Avg. Floor Nymex Avg. (3) (4) Natural Gas Swaps % Hedged Avg. Price Natural Gas Collars % Hedged Price Ceiling Price 2010E 55% 7.52…
July 2010 Investor Presentation CHK Hedging: Lucky or Good Quarterly Realized Gains and Losses 1Q'01 - 1Q'10 800 600 CHKs hedging program has generated 4.8 billion in realized 400 gains since inception in 2001 200 in…
Summary
July 2010 Investor Presentation CHK: Positioned for Success in 2010 and Beyond Great Assets 1 combined leasehold position in the Big 6 shale plays 15.8 tcfe of proved resources at 3/31/10 (20-22 tcfe by 2012), 80.4 tcfe risked…
July 2010 Investor Presentation What Are Unproved Resources and Unproved Acreage Worth Today Unrisked Risked Time Unrisked Risked Time Adjusted Unproved Unproved Adjusted Risked Risked Estimated Acreage Value Acreage Value Estimated…
July 2010 Investor Presentation CHK = Exceptional Value (1) 3/31/2010 Pro forma (2) NAV various NYMEX gas prices Average NYMEX Natural Gas Prices ( in millions, millions except per share data) 5 00 5.00 6 00 6.00 7 00 7.00 8…
July 2010 Investor Presentation Corporate Information Chesapeake Headquarters Contacts: 6100 N. Western Avenue Oklahoma City, OK 73118 Jeffrey L. Mobley, CFA Web site: www.chk.com Senior Vice President Investor Relations and…
Loading...
