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UBS Global Oil & Gas Conference – Chesapeake Energy Corp

Chesapeake Energy Corp · May 19, 2015 · 34 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 1
    UBS GLOBAL OIL AND GAS CONFERENCE MAY 19, 2015 1 I UBS Global Oil and Gas Conference 5/19/2015
  2. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 2
    STRONG STRATEGIC POSITION CHK Strong liquidity Industry-leading cash costs Superior capital efficiency Talented people High-quality assets 3 I UBS Global Oil and Gas Conference 5/19/2015
  3. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 3
    1Q15 FINANCIAL & OPERATIONAL RESULTS ADJ. EARNINGS/FDS ADJ. EBITDA PROD. and G&A EXP. 0.11 928 mm 5% YOY 5.75/boe(1) ADJ. PRODUCTION LIQUIDS MIX(3) ADJ. OIL PRODUCTION 14% YOY 29% of Total Production 17% YOY 686 mboe/d(2)…
  4. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 4
    EAGLE FORD LOW-COST VALUE GENERATION 1Q15 operational updates 600 700 incremental wells added to undrilled inventory following successful down spacing tests First 5 wells with 10,000+ laterals drilled in 1Q15 7% sequential…
  5. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 5
    EAGLE FORD SPACING TEST RESULTS 50 Southern Wet Gas Area Cumulative Oil (mbo) No appreciable production impact from 660' Spacing reduced spacing 25 500' Spacing Increased drillable locations by 600 700 120 Incremental…
  6. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 6
    EAGLE FORD DRIVING CAPITAL EFFICIENCY WITH LONGER LATERALS Field development planning focused on prioritizing longer lateral wells Successfully drilled five wells with laterals 10,000 in 1Q15 One 10,000 lateral well pays out twice…
  7. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 7
    HAYNESVILLE STRATEGIC DEVELOPMENT DRIVES VALUE CREATION 1Q15 operational updates Two 7,500 lateral tests flowing an average of 17 mmcf/d Doubled commercial Haynesville area Commercialization of the Bossier Shale 4% sequential…
  8. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 8
    HAYNESVILLE BREAKING THROUGH DEVELOPMENT BARRIERS 7,500 lateral test results Wells located in traditional 6 8 bcf contour interval Production test exceeds offsets by more than 8 mmcf/d 8.2mm Field estimated D&C cost 9 I…
  9. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 9
    MISSISSIPPIAN LIME CONSISTENTLY OUTPERFORMING EXPECTATIONS 1Q15 operational updates 11% sequential production increase to 32 mboe/d net Currently running three rigs & one completion crew 48 wells brought online in 1Q15 had…
  10. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 10
    MISSISSIPPIAN LIME LEADING THE INDUSTRY 45% capital reduction projected from 2012 to 2015 2015 development program generates 39% ROR at 2.5 mm(1) Capital efficiency improvements and field delineation program continue to generate…
  11. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 11
    NORTHERN MID-CONTINENT MERAMEC POTENTIAL High quality legacy position 74,000 net acres with stacked pay 91% of acreage is held by production 1723 BOEPD IP Oil (85% Oil) 1374 BOEPD IP 147 potentially operated sections Gas &…
  12. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 12
    NORTHERN MID-CONTINENT OKLAHOMA OIL GROWTH OPPORTUNITIES Formation Only 33% (365M acres) of Chesapeakes acreage is assigned to Miss Lime 1.1 million Total Net Acres Acres Stacked plays with proven strong Horizontal…
  13. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 13
    UTICA 2015 STRATEGIC FOCUS 1Q15 operational updates Five rigs currently; two rigs by middle of 3Q15 Four frac crews currently; 2.5 on average for remainder of year Minimum two rigs to hold acreage Strategic priorities CHK/TOT JV…
  14. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 14
    UTICA IMPROVING PERFORMANCE LEADS TO CORE EXPANSION Columbiana County Well Results Optimized completions 2,000 Early Wells 1,800 Enhanced geologic interpretation 1,600 3 Wells New Wells Expected Type Curve 1,400 Targeting…
  15. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 15
    POWDER RIVER 2015 STRATEGIC FOCUS 1Q15 operational updates Gross Unrisked Resources One rig current through YE15 One frac crew currently; limited crews remainder of year Federal Units limit amount of activity needed (1) to…
  16. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 16
    POWDER RIVER SUSSEX PERFORMANCE Sussex Drilled Wells Peak 24-Hour Rates 14 days Jul 2014 TIL Recent spud to rig release record Peak 1,000 boe/d 3.2mm drilling cost (1 mm savings) (88% Oil) Feb 2014 TIL Peak 1,420 boe/d (75%…
  17. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 17
    LOWER 2015 CAPEX AND ACTIVITY D&C Capex and Rig Count Completion Activity 1.4 60 300 18 1.2 16 50 250 14 1.0 in billions Frac Crews 40 200 12 Well Count 0.8 10 30 150 0.6 8 20 100 6 0.4 4 0.2 10 50 2 0.0 - 0…
  18. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 18
    STRONG STRATEGIC POSITION CHK Strong liquidity Industry-leading cash costs Superior capital efficiency Talented people High-quality assets 19 I UBS Global Oil and Gas Conference 5/19/2015
  19. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 19
    APPENDIX 20 I UBS Global Oil and Gas Conference 5/19/2015
  20. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 20
    REDUCED ACTIVITY LEVELS 2015E 2015E YE 2015 Avg.Op Rigs Avg.Op Rigs Op. Rigs (2/25 Outlook) (3/23 Outlook) (3/23 Outlook) Eagle Ford 12 14 8 10 24 Utica 35 35 23 Haynesville 78 56 24 PRB: Niobrara & Upper Cretaceous 34 23 12…
  21. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 21
    RECONCILIATION OF ADJUSTED EARNINGS PER SHARE ( in mm) Three Months Ended: 3/31/2015 3/31/2014 Net income available to common stockholders (3,782) 374 Adjustments, net of tax: Unrealized gains on derivatives 192 80 Restructuring…
  22. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 22
    RECONCILIATION OF ADJUSTED EBITDA ( in mm) Three Months Ended: 3/31/2015 3/31/2014 Cash provided by operating activities 423 1,291 Changes in assets and liabilities 487 332 (1) Operating cash flow 910 1,614 Net income (3,720)…
  23. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 23
    MISSISSIPPIAN LIME IMPROVED KNOWLEDGE DRIVES PERFORMANCE 500 2012 20% Increase in EUR over two years 400 2013 Daily Production (boe/d) 2014 300 200 Significant well performance improvement over the last 100 three…
  24. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 24
    ENHANCING OUR BASE PRODUCTION IMPROVED RECOVERY FROM OUR ASSETS Abundant opportunities within Chesapeake 4,600 under-stimulated legacy wells Re-stimulating the Barnett Early field completions were small 1,100+ potential re-frac…
  25. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 25
    HAYNESVILLE NEW WELL DESIGNS ARE EXPANDING THE PLAY Increased lateral lengths and enhanced stimulations have expanded the core of the play EUR expected to increase 200% Expected 42% reduction in cost per lateral foot 50%…
  26. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 26
    HAYNESVILLE NEW STIMULATION TECHNIQUES DRIVE PERFORMANCE Enhanced stimulations have expanded the core of the play Extending production peaks Greater than a 25% increase in EUR Expands developable area by 90,000 net acres to a total…
  27. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 27
    BOSSIER SHALE CREATING VALUE IN ALL PRODUCTIVE FORMATIONS Capital efficiencies and enhanced Cumulative Well Count 4,500 ft 422 completion techniques open play for 7,500 ft development 10,000 ft 285 Low existing well count allows…
  28. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 28
    UTICA ENHANCED COMPLETIONS PROGRESS Completion Performance 20% EUR improvement driven by 41 enhanced completions Lateral Length per Well Stages per Well Longer lateral lengths 29 Increased stages per well 17 Tailored…
  29. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 29
    UTICA INDUSTRY-LEADING PERFORMANCE Drilling Performance Average Well Cost 30 1,200 12 Drill Days Penetration Rate 25 1,000 10 Gross Capex / Well, mm 20 800 8 Drill Days Ft / Day 15 600 6 10 400 4 5 200 2 0 0…
  30. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 30
    POWDER RIVER NIOBRARA COMPLETION PERFORMANCE 20% EUR improvement driven by enhanced completions Averaged lateral length of 5,425 in 2014 Niobrara Type Curve (+7% vs. 2013) 1,400 700 2014 Program Daily Avg. Rate Averaged 20 frac…
  31. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 31
    CAPTURING MORE FOR LESS NORTHERN DIVISION Utica: 53% Improvement Marcellus North: 39% Improvement Powder River: 46% Improvement Note: Capex / EUR is defined as net drilling and completion (D&C) costs per well divided by net…
  32. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 32
    CAPTURING MORE FOR LESS SOUTHERN DIVISION Haynesville: 67% Improvement Eagle Ford: 38% Improvement Mississippian Lime: 47% Improvement Note: Capex / EUR is defined as net drilling and completion (D&C) costs per well divided…
  33. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 33
    DRILLING AND SERVICES COMMITMENTS 150 PTL Commitment Fulfilled Drill Commitment Fulfilled 125 Drill Commitment Penalty Total Commitment ( in mm) 100 51 75 Rigs 71 50 Rigs 25 65 Rigs 51 Rigs 45 0 1Q15 Q1 2015…
  34. UBS Global Oil & Gas Conference – Chesapeake Energy Corp – slide 34
    CORPORATE INFORMATION CHESAPEAKE HEADQUARTERS PUBLICLY TRADED SECURITIES CUSIP TICKER 6100 N. Western Avenue 3.25% Senior Notes due 2016 165167CJ4 CHK16 Oklahoma City, OK 73118 6.25% Senior Notes due 2017 027393390 N/A WEBSITE:…

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