January 2010 Investor Presentation CHK Overview The second largest producer of U.S. natural gas 3Q09 natural gas production of 2.286 bcf/day Most active driller in U.S. CHK is responsible for 1 of 7 gas wells being drilled in the…
January 2010 Investor Presentation CHK Overview, Continued High quality U.S. asset base; only producer with 1 or 2 position in Big 4 U.S. shale plays 1 in Haynesville Shale; 510,000 net acres 1 in Marcellus Shale; 1,520,000 net…
January 2010 Investor Presentation CHK/TOT Barnett Shale Joint Venture Summary CHK has agreed to sell a 25% interest in its upstream Barnett Shale assets to Total E&P USA, INC., a wholly-owned subsidiary of Total S.A. (NYSE:TOT,…
Powerful Assets Create Powerful Value
January 2010 Investor Presentation Location of CHK Properties Natural gas focused Well-diversified All onshore U.S. Not in the GOM (high and dry) Marcellus a hi Shale ac Not in the Rockies (fewer…
January 2010 Investor Presentation Americas 1 Gas Resource Base Net Acreage Drillsites CHK is exceptionally well positioned for 14.0 million acres 34,800 net drillsites long-term profitable growth Largest combined inventories of…
January 2010 Investor Presentation CHKs Drilling Inventory(1) Total Proved Est. Risked Est. Avg. Total Risked and Risked Unrisked October Oct-09 CHK CHK Drilling Net Reserves Proved Unproved Unproved Unproved Daily Operated…
January 2010 Investor Presentation CHK Play Comparison 11,000 Pre-Carry Gross Well 10,000 F&D Cost Est. IRR EUR Costs Royalty (per mcfe) 7 Gas/ (bcfe) (mm) 70 Oil 9,000 Haynesville 6.50 7.0 25% 1.44 55% 8,000 Marcellus 4.20…
January 2010 Investor Presentation Haynesville Shale Summary 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…
January 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 175,000 net acres of leasehold prospective for Bossier…
January 2010 Investor Presentation CHK 1 in the Haynesville Core CHK discovered the Haynesville and from the beginning targeted the Core In the past three years, CHK has built the dominant leasehold position in the Core CHK has…
January 2010 Investor Presentation CHK Also 1 in the Haynesville/Bossier Shale Overlap Core CHK anticipates having an interest in roughly 80% of the wells drilled in the Haynesville and Bossier Core area CHK is concentrated in…
January 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 CHK is the first or…
January 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 50% of all shale gas in the U.S.…
January 2010 Investor Presentation Fayetteville Shale Summary 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…
January 2010 Investor Presentation Greater Granite Wash OK CHK Op Rigs CHK Non-Op Rigs TX Industry Rigs CHK Acreage 70miles 160 miles Texas Panhandle Granite Wash Colony Granite Wash Located in Hemphill, Wheeler,…
January 2010 Investor Presentation The Industrys Cost Curve is Shifting Rapidly Very Important to Understand Until five years ago, most E&P companies in the U.S. owned an asset base that was more or less the same as everyone elses not…
January 2010 Investor Presentation What is the Marginal Cost of Supply Natural gas prices not likely to stay permanently low because of the great 3.00 success of the Big 4 Shale plays Other Permian Pre-drilling carry targeted…
January 2010 Investor Presentation Key Natural Gas Market Factors While U.S. natural gas prices were weak in 2009, market forces are already setting stage for natural gas price recovery in 2010 (6-7) and 2011 (7-8) The laws of…
January 2010 Investor Presentation Top 20 U.S. Natural Gas Producers Daily U.S. Natural Gas 2008 Reported Proved U.S. U.S. U.S. U.S. Gas Rigs Production (a,b) 3Q'09 3Q'09 U.S. Net Natural Gas Gas Rigs Gas Rigs % Drilling vs. 2Q'09…
January 2010 Investor Presentation 2010 Financial Projections at Various Natural Gas Prices As of 1/4/10 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) 967 bcfe 3,770 4,480 5,200…
January 2010 Investor Presentation 2011 Financial Projections at Various Natural Gas Prices As of 1/4/10 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) 1,113 bcfe 4,260 5,090…
January 2010 Investor Presentation (1) Cash Resource Plan 10 - 11 2010E 2011E Total (1)(2) Operating Cash Flow 4,450 - 4,750 5,000 - 5,600 9,450 - 10,350 Net leasehold and producing properties transactions 1,300 - 1,700 1,000 -…
January 2010 Investor Presentation Senior Note Maturity Schedule(1) Total Senior Notes: 11.2 billion Average Rate: 6.2% 3,278(2) Average Maturity: 7.3 years 2,476(2) 2,163(2) 1,270 864 3.5 3.5 billion billion bank…
January 2010 Investor Presentation CHKs Natural Gas and Oil Hedge Positions for 2010-2011(1)(2) Volume Hedged NYMEX Volume Hedged NYMEX Avg. Nymex Avg. (3) (4) Natural Gas Swaps (bcf) % Hedged Avg. Price Natural Gas Collars (bcf) %…
January 2010 Investor Presentation CHK = Exceptional Value (1) Proforma September 30, 2009 (2) 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…
January 2010 Investor Presentation CHK: Positioned for Success in 2010 and Beyond Great Assets Only company with a Top-2 leasehold position in each of the Big 4 shale plays 14 tcfe likely of proved reserves at 12/09 (20-22 tcfe by 3-4…
January 2010 Investor Presentation Corporate Information Chesapeake Headquarters Contacts: 6100 N. Western Avenue Jeffrey L. Mobley, CFA Oklahoma City, OK 73118 Senior Vice President Web site: www.chk.com Investor Relations and…
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