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TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp

Chesapeake Energy Corp · Jun 18, 2014 · 20 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. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 1
    Tudor, Pickering, Holt & Co. Hotter N Hell Energy Conference Houston, TX June 18, 2014
  2. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 2
    BUSINESS TRANSFORMATION OVERVIEW Organizational structure Corporate budget process and plan Capital efficiency improvement Portfolio management and capital allocation process Cash cost reduction Performance measurement and…
  3. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 3
    APPLYING OUR BUSINESS STRATEGIES Balance capital expenditures with Develop world-class inventory cash flow from operations Target top-quartile operating and Divest noncore assets and financial metrics noncore affiliates Pursue…
  4. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 4
    FOUNDATIONAL ELEMENTS FOR VALUE CREATION CHK 5 I TPH Hotter N Hell Conference
  5. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 5
    INDUSTRY LEADER CHK (including Utica) CHK Size of bubbles 15% represent the (including % of Total U.S. Utica)(1) gross shale production Number of Shale Plays in which Company has Top 3 Position Independents Majors…
  6. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 6
    2014 PERFORMANCE Business Delivery Current Outlook (May 2014) Production growth 9 -12% Cash flow 5,550 - 5,750 MM Capital 5,000 - 5,400 MM (Excluding Cap Interest) Cash costs LOE, G&A and interest expense Leverage 20% by…
  7. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 7
    CAPITAL DISCIPLINE 13.6 B 13.4 B 13.1 B 6.7 B (1) 5.2 B (2) 2010 2011 2012 2013 2014E Other Capex Leasehold Capex D&C Capex Operating Cash Flow (1) Based on midpoints of company-issued Outlook ranges provided on…
  8. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 8
    2014 CAPITAL EFFICIENCY COMPARISON Growing More While Spending Less 30 12,000 Prod. Growth Guidance (Same Store Sales) Total Capex Guidance ( in mm) 25 10,000 Total Capex Guidance ( in mm) Production Growth (MMBOE) 20…
  9. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 9
    REDUCING OBLIGATIONS AND COMPLEXITY (mm) 12/31/12 12/31/13 12/31/14E Term Loan 2,000 2,000 0 Long-Term Bonds 10,666 10,838 11,825 Credit Facilities 418 405 0 Total Debt 13,084 13,243 11,825 10% reduction VPPs 3,187 2,455 1,720…
  10. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 10
    REALIZING IMPACT OF STRATEGY SHIFTS 2012 2013 1Q14 30% 15% 54% 46% 70% 85% HBP Focus Pad Drilling Focus Value and Right-sized Maximization Drilling Program Focus Negative PV-10 Positive PV-10 20% Improvement of…
  11. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 11
    DRILLING EFFICIENCY IMPACT 470 mm Total annualized avg. gross drilling capital savings 1Q14 vs. 2013(1) (1) Assumes 1,200 total wells drilled in 2014E 12 I TPH Hotter N Hell Conference
  12. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 12
    PRODUCTION ACCELERATION: OPTIMIZING THE BASE Targeting improvement in base decline rate 4 mmboe Incremental production from 30% to 27% Decreases capital intensity of existing portfolio 85 mm Incremental ebitda Opportunity to…
  13. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 13
    UTICA ASSET OVERVIEW Over 1 million net acres 250,000+ net acres in wet gas window 300,000+ net acres in oil window 540,000+(1) net acres in dry gas window 66% avg. WI, 53% avg. NRI CHK/TOT JV Outline 4+ bboe of net…
  14. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 14
    UTICA PRODUCTION RAMP 400% 300% 30 - 60% YOY Production Growth YOY Production Growth YOY Production Growth (2012 to 2013) (2013 to 2014E) (2014E to 2015E) 120 Key 2014 Milestones NGL 100 1Q14 Avg. Production 50,000 boe/d net…
  15. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 15
    UTICA UNLOCKING THE OIL WINDOW 500 barrels oil Recent oil IPs (old completion design) 1,000 boe/d Recent full-stream IPs Oil Window (old completion design) Test Area Leveraging proprietary Reservoir Technology Center…
  16. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 16
    UTICA OPPORTUNITIES DRY POTENTIAL 6.7 Mmcf/d 6.1 Mmcf/d 5.1 Mmcf/d 7.1 Mmcf/d 330,000 acres 5.1 Q2Mmcf/d 12 Net, dry gas acres in Jefferson County, OH and W. Virginia 5.9 Mmcf/d 5.9 Mmcf/d Q1 12 6.9 Mmcf/d 6.9 Mmcf/d Q4…
  17. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 17
    SOUTHERN MARCELLUS ASSET OVERVIEW 2.7 bboe of net recoverable resources 250,000+ net acres 68% avg. WI, 57% avg. NRI Net production of 55 mboe/d(1) 1 - 2 operated rigs in 2014 CHK Operated Rigs Industry Rigs CHK Leasehold…
  18. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 18
    SOUTHERN MARCELLUS VALUE AND GROWTH OPPORTUNITY Potential to unlock significant value Combination of dry gas Utica and liquids-rich S. Marcellus acreage Annual organic growth potential 50% Ramp activity into expanding…
  19. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 19
    5-YEAR PREVIEW FOCUSED ON VALUE DELIVERING GROWTH 1 MILLION BOE/DAY (1) Growth ranges based on midpoint of company Outlook issued on 5/16/2014. 20 I TPH Hotter N Hell Conference
  20. TPH Hotter N Hell Energy Conference – Chesapeake Energy Corp – slide 20
    NET ASSET VALUE AND UPSIDE POTENTIAL CHK 40 NAV/share(1) (1) Based on commodity prices of 4.50 and 90.00 for natural gas and oil, respectively, 20,000 risked drilling locations, net debt, NCI and other liabilities of 13…

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