August 2010 Investor Presentation CHK Overview Second largest producer of U.S. natural gas 2Q10 natural gas production of 2.497 bcf/d, total company production of 2.789 bcfe/d Most active driller in U.S. CHK is responsible for 1 of…
August 2010 Investor Presentation CHK Overview, Continued High quality natural gas shale and unconventional liquids U.S. asset base Five major natural gas shale plays: 2.8 mm net acres Marcellus, M ll H Haynesville, ill B…
August 2010 Investor Presentation Strong 2Q10 Results Top-tier production growth 2Q10 production of 2.789 bcfe/d; up 14% YOY and 8% sequentially; best among large cap E&Ps 2Q10 average daily production increased 26% YOY (adjusted…
August 2010 Investor Presentation Strategic and Financial Plan Update CHK has accomplished multiple parts of its strategic and financial plan, which was announced on May 10, 2010 In 2Q10, issued 2.6 billion of convertible preferred…
August 2010 Investor Presentation CHK's Near-Term Priorities Reduce drilling of natural gas wells except for those required to HBP leasehold or to use a drilling carry provided by a JV partner until natural gas prices rise above…
August 2010 Investor Presentation Accelerating Transition to Drilling in Liquids-Rich Plays Total Natural Gas Capex Total Liquids Capex 100% pletion Capex 80% 45% HK Operated Drrilling and Comp 59% 68% 60% 87% 90%…
August 2010 Investor Presentation CHK Keeps Delivering Per Share Growth Production/Weighted Average Share Proved Reserves/Fully Diluted Share 1.8 30 age share 1.6 25 mcfe/fully diluted share 1.4 12 1.2 20 mcfe/weighted…
Asset Overview
August 2010 Investor Presentation CHKs Operating Areas CHK is transitioning from 92% natural gas production in 2009 to a greater balance between natural gas and oil 10
August 2010 Investor Presentation Americas 1 Resource Base CHK is exceptionally well positioned for long- Net Acreage Drillsites term profitable growth 13.9 million acres 40,000 net drillsites Largest combined inventories of…
August 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…
August 2010 Investor Presentation Eagle Ford Shale - Overview CHK began leasing in August 2009 and has since captured a Top-2 position in the industry Prospective Area = 6.3 Million Acres with 550,000 net acres of leasehold Foc…
August 2010 Investor Presentation Greater Granite Wash Overview CHK Op Rigs OK Texas Panhandle CHK Non-Op Rigs Granite Wash Colony Granite CHK Acreage A TX Wash Zybach 2010H 70miles Peak Rate: 8.0 mmcf and 1,270 bbls/d…
August 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 other) Prospective Area = 15 Million Acres Mowry 1H CHK is…
August 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…
August 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 195,000 net acres of leasehold prospective for Bossier…
August 2010 Investor Presentation Barnett Shale Overview The Barnett Shale is currently the largest natural gas producing field in the U.S. and is producing 40% of all Prospective Area = 1.5 Million Acres shale gas in the U.S.…
August 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 p…
Financial Overview
August 2010 Investor Presentation 2010 Financial Projections at Various Natural Gas Prices As of 8/3/10 Outlook ( in millions; oil at 80.00 NYMEX) 4.00 5.00 6.00 7.00 8.00 9.00 (1) O/G revenue (unhedged) 1,022 bcfe 4,510 4,770…
August 2010 Investor Presentation 2011 Financial Projections at Various Natural Gas Prices As of 8/3/10 Outlook ( in millions; oil at 80.00 NYMEX) 4.00 5.00 6.00 7.00 8.00 9.00 (1) O/G revenue (unhedged) 1,204 bcfe 5,410 6,230 7,060…
August 2010 Investor Presentation CHKs Natural Gas and Oil Hedge Positions for 2010-2011(1)(2) NYMEX Avg. Floor Nymex Avg. (3) Natural Gas Swaps % Hedged Avg. Price Natural Gas Collars % Hedged Price Ceiling Price 2010E 51% 7.58…
August 2010 Investor Presentation CHK Hedging: 5.4 Billion Lucky or Good Quarterly Realized Gains and Losses 1Q'01 - 2Q'10 800 4.00 CHKs hedging program has generated 5.4 billion in realized n millions) 600 3.00 gains since…
Summary
August 2010 Investor Presentation CHK: Positioned for Success in 2010 and Beyond Great Assets Largest leasehold position in the best U.S. onshore natural gas shale plays 2.4 mm net acres of leasehold targeting liquids-rich plays…
August 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…
August 2010 Investor Presentation CHK = Exceptional Value 6/30/2010 (1) NAV various NYMEX gas prices Average NYMEX Natural Gas Prices ( in millions, except per share data) 4.00 5.00 6.00 7.00 8.00 9.00 Proved developed reserves…
August 2010 Investor Presentation Corporate Information Chesapeake Headquarters Corporate Contacts: 6100 N. Western Avenue Oklahoma City, OK 73118 Jeffrey L. Mobley, CFA Web site: www.chk.com Senior Vice President Investor…
August 2010 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.…
August 2010 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…
August 2010 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…
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