October 2013 Investor Presentation OCTOBER 2013 INVESTOR PRESENTATION
October 2013 Investor Presentation GREAT FUTURE, GREAT ASSETS Natural Gas Plays Utica Shale Liquid Plays Wet Gas Window Operating States Marcellus Shale Powder River Basin: Niobrara Shale Anadarko Basin: Barnett Shale…
October 2013 Investor Presentation CURRENT STATE OF CHK New strategy will capitalize on CHKs speed Essential elements for success in place Assets People Stable and improving financial profile Strong 2nd quarter results On…
October 2013 Investor Presentation KEY STRATEGIC TENETS Financial discipline Balance capital expenditures with cash flow from operations Implement competitive capital allocation process to ensure highest quality projects are…
October 2013 Investor Presentation KEY NEAR-TERM PRIORITIES Implement efficient capital allocation process Focus capital on highest rate of return plays Internal competition for capital 2014 capital budget will not be dependent…
October 2013 Investor Presentation COMPREHENSIVE REVIEW 1 Organizational structure 2 Overhead 3 Field operations 4 Portfolio assessment 5 Financial planning and results 6 Noncore affiliates CHK has great assets and…
October 2013 Investor Presentation FOCUSING CAPITAL ON CORE E&P OPERATIONS Drilling and Completion Capex Other Capex Leasehold Capex Operating Cash Flow 13.6 13.4 13.2 7.2 5.7 59% 41% 55% 66% 81% Devoting 80%…
October 2013 Investor Presentation NOW POSITIONED TO FOCUS ON EFFICIENCY Pad Drilling in Growth Plays Drilling program targeting our best rock Capture drilling efficiency gains of 15 - 30% by utilizing pre-existing pads…
October 2013 Investor Presentation EAGLE FORD EFFICIENCY OPPORTUNITY Oil Window Net Production: 85 mboe/d Wet Gas Window Dry Gas Window CHK leasehold Operated rigs HBP drilling largely complete: 75% acres HBPd in the…
October 2013 Investor Presentation EAGLE FORD GROSS OPERATED OIL PRODUCTION 160 CHK Peers 140 Gross Operated Oil Production (mbbls) 120 100 80 60 40 20 0 Data Source: IHS Energy CHK is the second…
October 2013 Investor Presentation UTICA PRODUCTION ACCELERATING AS INFRASTRUCTURE EXPANDS CHK Contracted Facilities 2Q13 daily net production of 85 mmcfe/d OHIO Nisource/Hilcorp 3rd Party Facilities Targeting YE13 exit rate of…
October 2013 Investor Presentation NORTHERN MARCELLUS CHK leasehold Recently divested leasehold CHK operated rigs Industry rigs CHK Core CHK Core of the Core 2Q13 daily net production of 780 mmcfe/d Drilling…
October 2013 Investor Presentation EXPECT TO DELIVER STRONG RESULTS IN 2013 ADJ. NET INCOME ADJ. EBITDA TOTAL CAPEX 136% YOY 31% YOY 46% YOY 2012 456 mm 2012 3.75 billion 2012 13.4 billion 2013E 1,080 mm(1) 2013E 4.91…
October 2013 Investor Presentation WHAT TO EXPECT Reduced capital intensity Target top-quartile operating metrics Improved operational performance Balance sheet improvement through noncore asset sales 2014 guidance will be…
October 2013 Investor Presentation CORPORATE INFORMATION CHESAPEAKE HEADQUARTERS PUBLICLY TRADED SECURITIES CUSIP TICKER 6100 N. Western Avenue 9.5% Senior Notes due 2015 165167CD7 CHK15K Oklahoma City, OK 73118 3.25% Senior…
October 2013 Investor Presentation APPENDIX
October 2013 Investor Presentation EMPHASIZING HIGHER RETURN LIQUIDS-RICH PLAYS Operated Rigs % of Operated Drilling and Completion Capex Total Liquids Capex Total Dry Gas Capex 140 16% 13% 120 100 54% 70% 80 Liquids-rich…
October 2013 Investor Presentation LIQUIDS-DRIVEN PRODUCTION GROWTH Miss Lime, N. Eagle Ford and Haynesville Sales 168,000 bbls/d in 2Q13 % Liquids 3.1 bcf/d in 2Q13 E CHKs dry gas production peaked in…
October 2013 Investor Presentation OUTLOOK SUMMARY (1) 2012 YE 2013E Natural gas (bcf) 1,129 1,080 - 1,100 Oil (mbbls) 31,265 38,000 - 40,000 NGL (mbbls) 17,615 21,000 - 23,000 Natural gas equivalent (bcfe) 1,422 1,434…
October 2013 Investor Presentation 2013 FINANCIAL PROJECTIONS (1) NYMEX Natural Gas Prices As of 8/1/2013 Outlook ( in mm; oil at 100 NYMEX) 3.00 4.00 5.00 O/G revenue(2) 6,570 7,020 7,470 Adjusted ebitda 4,810 4,910 5,000…
October 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.…
October 2013 Investor Presentation RECONCILIATION OF 2012 ADJUSTED NET INCOME AND ADJUSTED EBITDA ( in millions)(unaudited) (a) (b) (a) Adjusted net income available to common stockholders and adjusted earnings per share…
October 2013 Investor Presentation RECONCILIATION OF 2013 FINANCIAL PROJECTIONS: ADJUSTED EBITDA TO OPERATING CASH FLOW NYMEX Natural Gas Prices As of 8/1/2013 Outlook ( in mm; oil at 100 NYMEX) 3.00 4.00 5.00 O/G revenue…
October 2013 Investor Presentation RECONCILIATION OF 2013 FINANCIAL PROJECTIONS: OPERATING CASH FLOW TO ADJUSTED NET INCOME NYMEX Natural Gas Prices As of 8/1/2013 Outlook ( in mm; oil at 100 NYMEX) 3.00 4.00 5.00 Operating cash…
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