December 2008 Investor Presentation Introduction to CHK 1 producer of U.S. natural gas 3Q08 natural gas production of 2,138 mmcf/day; 3.5% of U.S. production; 2009E 2 214mmcf/day and 2010E 2 2,214mmcf/day 2,515 515 mmcf/day 1…
December 2008 Investor Presentation Financial Highlights 22.2 billion enterprise value 9.1 billion equity value, 10.8 billion net long-term debt, plus 0.5 billion preferred stock and 1.8 billion working capital deficit Strong…
December 2008 Investor Presentation Financial and Operational Update Proactive Cash Flow Management g CHK continues to proactively adapt to changing market conditions Reduced 2009 and 2010 capital spending plans on 12/7/08 to…
December 2008 Investor Presentation Financial and Operational Update Asset Monetizations on the Horizon In discussions to sell CHKs fourth VPP on properties in the Anadarko and Arkoma Basins 100 100 bcfe of proved reserves Current…
December 2008 Investor Presentation Financial and Operational Update Hedge g Protection and Cost Advantages g Restructured hedge positions substantially protects 2009 cash flow 76% of anticipated 2009 natural gas production hedged…
CHKs Distinctive Business Strategy
December 2008 Investor Presentation Were Good at Anticipating Opportunities & Challenges g CHK recognized earlier than most that higher oil and natural gas prices, combined with better drilling and completion technology, would…
December 2008 Investor Presentation CHKs Business Model Chesapeakes large and diversified production base and leasehold inventory offers multiple monetization and value creation alternatives Apply Cutting-Edge Invest in…
December 2008 Investor Presentation Location of CHK Properties Gas-focused Well-diversified All onshore U.S. Not in the GOM (high and dry) Marcellus Shale Not in the Rockies (fewer political/environmental hassles, better…
December 2008 Investor Presentation Americas 1 Gas Resource Base Net Acreage Drillsites CHK is well positioned for long-term 15.0 million acres 35,500 net drillsites profitable fi bl growth h 5,500 Largest combined inventories of…
December 2008 Investor Presentation CHKs Drilling Inventory Total Proved Est. Risked Est. Avg. Total Risked and Risked Unrisked Current CHK CHK Drilling Net Reserves Proved Unproved Unproved Unproved Daily Industry Net Density…
December 2008 Investor Presentation CHK was the Largest U.S. Natural Gas Producer in 3Q08 Daily U.S. Natural Gas Production (a,b) 2007 2007 3Q'08 3Q'08 Reported U.S. Proved U.S U.S. Rigs vs. 2Q'08 vs. 3Q'07 Net Proved Gas Gas Reserve…
December 2008 Investor Presentation Whats New in the Haynesville Shale 100 Miles CHKs largest discovery and expected to become the largest U.S. natural gas field Play Pl encompasses a 3.5 3 5 million illi acre area in i NW…
December 2008 Investor Presentation Whats New in the Barnett Shale CHK is the second-largest producer, most active 82 Miles g driller and largest leasehold owner in the Core and Tier 1 sweet spots of Tarrant, Johnson and western…
December 2008 Investor Presentation Whats New in the Fayetteville Shale Planning to operate an average of 20 rigs in 2009 to further develop 415,000 nett acres off lleasehold h ld 9/30/08 net production of 145 mmcfe/day is up…
December 2008 Investor Presentation Whats New in the Marcellus Shale CHK is a top-3 producer and the largest leasehold owner in the Marcellus Shale play CHK Acreage CHK Rigs Currently operating 3 rigs to further develop 1.2…
Financial Overview
December 2008 Investor Presentation Strong Cash Margins and Steadyy Debt Levels per p Mcfe 9.50 3Q08 Averages 9.00 Net cash margin (per mcfe) 8 50 8.50 P f Preferredd dividends di id d 8.00 Interest expense (1) G&A(2) Realized…
December 2008 Investor Presentation Senior Note Maturity Schedule 9/30/08 / / 4,000 3,600 Total Senior Notes: 10.1 billion Average Rate: 5.6% 3,323(1) 3,200 Average Maturity: 8.3 years 2,800 2,526(1) 2,400 2 400 in MM…
December 2008 Investor Presentation 2009 Financial Projections at Various Natural Gas Prices As of 12/7/08 Outlook ( in millions; oil at 70.00 NYMEX) 5.00 6.00 7.00 8.00 9.00 O/G revenue (unhedged) 880 bcfe(1) 4,338 5,050 5,761…
December 2008 Investor Presentation 2010 Financial Projections at Various Natural Gas Prices As of 12/7/08 Outlook ( in millions; oil at 80.00 NYMEX) 5.00 6.00 7.00 8.00 9.00 O/G revenue (unhedged) 996 bcfe(1) 5,005 5,811 6,618…
December 2008 Investor Presentation (1) Cash Resource Plan 4Q08 - 10 Net Cash Resources ( in millions) Q4'08E 2009E 2010E Total (1)(2) Operating cash flow 1,250 - 1,300 4,800 - 5,100 5,700 - 6,100 11,750 - 12,500 Leasehold and…
December 2008 Investor Presentation Successful Hedging Reduces Risk and Helps p Secure Attractive Cash Margins g CHKs natural gas and oil hedge positions for 4Q08-2010(1)(2) NYMEX NYMEX Avg. Nymex Avg. Natural Gas Swaps(3)(4) %…
December 2008 Investor Presentation CHK = Great Value September 30, 2008 - Pro Forma (1) NAV various NYMEX gas prices Average NYMEX Natural Gas Prices ( in millions, except per share data) 5.00 6.00 7.00 8.00 9.00 Proved reserves…
December 2008 Investor Presentation Why Buy CHK Gas Focus Purest play in U.S. natural gas; largest producer of U.S. natural gas Growth Total production growth of 23% in 07; projecting increases of 17% in 08, 5-10% in 09 and 10-15%…
Appendix pp
December 2008 Investor Presentation Natural Gas Advantages CLEAN: Carbon-light structure represents a key advantage for Americas energy g ffuture t Natural gas is a simple molecule that contains only one carbon atom and four…
December 2008 Investor Presentation Natural Gas Advantages ABUNDANT: Latest Colorado School of Mines Potential Gas Committee study estimate shows potential gas reserves of 1,525 tcf in the U.S. a 75-year supply This new…
December 2008 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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