BARCLAYS CEO ENERGY-POWER CONFERENCE September 8, 2015 1 I Barclays CEO Energy-Power Conference 9/8/2015
NEAR-TERM STRATEGY Maximize Improve Preserve Use speed, liquidity margins cash flow operating generating efficiency capability and capital allocation as strengths 3 I Barclays CEO Energy-Power Conference 9/8/2015
MAXIMIZE LIQUIDITY Proactively working to increase liquidity Maintaining capital discipline during low-price environment Targeting 2015 ending cash balance of 1.5 billion, 4.0 billion undrawn credit facility Bottom line: spending…
IMPROVE MARGINS Lowering LOE and G&A 7.76 6.60 Multiple initiatives underway to improve 5.94 net revenue 5.75 - 5.94 Aligning future gathering system spending around reduced capital program Blending Logistics Base…
KEY BENEFITS OF NEW GATHERING AGREEMENTS Haynesville and dry gas Utica gathering contracts move to fixed fee agreements Enhances economics and NAV of Haynesville and dry gas Utica assets through improving capital efficiency and…
HAYNESVILLE SHALE STRATEGIC DEVELOPMENT DRIVES VALUE CREATION Intense focus on improving margins Strong performance from extended lateral tests continue Spud first 10,000 lateral well Operated Production Cost / Mcfe 0.59…
HAYNESVILLE SHALE STEP CHANGE IN VALUE Enhanced Completions Expanding Core Extended Laterals Outperforming Enhanced completions results Strong results from 7,500 lateral tests Extending production peak rates Production exceeds…
UTICA SHALE UNLOCKING VALUE Over 1 million acres across basin 80%+ of our gas will receive Gulf Coast pricing by YE2015 Relentless operational improvement enhances investment CHK/TOT JV Outline 2015 wells vs. 2013: CHK…
UTICA SHALE HIGHLY COMPETITIVE ASSET 1,000 2015 2.50/mcf Break-even (PV10)(2) 800 2014 Average Average Lateral Length Stages per Well Gross Processed boe/d(1) 2015E 7,900 ft. 41 600 2013 2012 2014 6,200 ft. 29 2013…
CAPITAL ALLOCATION FLEXIBILITY BREAK-EVEN ANALYSIS Natural Gas Break-even (PV10)(1) (1) Assumes NYMEX oil price of 50/bbl held constant 12 I Barclays CEO Energy-Power Conference 9/8/2015
EAGLE FORD LOW-COST VALUE GENERATION Scaling activity to commodity price Significant improvement in capital costs Focus on extending laterals to further improve capital efficiency and reduce break-even costs Well Cost /…
ANADARKO BASIN STACKED RESERVOIRS Approximate Net Acres(1) Des Moines GW 334,000 Douglas 27,000 Checkboard 63,000 Tonkawa 243,000 Upper Cleveland 134,000 Lower Cleveland 49,000 Hoxbar Oil Sands 140,000 Woodford 35,000…
MID-CONTINENT MERAMEC & OSWEGO STACK POTENTIAL 1,200 Locations CHK Hughes Trust 1H Oswego Test Initial CHK 2052 BOEPD Peak 3 Oswego wells drilled to date Meramec Well (93% Oil) Currently drilling first Meramec test 1723…
CAPITAL ALLOCATION FLEXIBILITY BREAK-EVEN ANALYSIS Oil Break-even (PV10)(1) (1) Assumes NYMEX natural gas price of 3.00/mcf held constant 16 I Barclays CEO Energy-Power Conference 9/8/2015
LEADING WITH OUR STRENGTHS Portfolio quality and geographic diversity provides optionality Superior resource exposure Core positions in six operating areas Exploration upside Unparalleled geotechnical capabilities Leads to value…
APPENDIX 18 I Barclays CEO Energy-Power Conference 9/8/2015
WILLIAMS HAYNESVILLE SHALE IMPACT Consolidates two separate agreements (Springridge and Mansfield) to one fixed fee structure Expected gas gathering fee for full-year 2016 (including MVC payment) of 0.88/mcf moves to 0.65/mcf…
WILLIAMS DRY GAS UTICA IMPACT Moves to fixed fee agreement Expected gas gathering fee for full-year 2016 of 0.67/mmbtu changes to 0.41/mmbtu, and escalates with CPI thereafter MVC of 250 mmbtu/d beginning in mid-2017 expected to…
NORTHERN MARCELLUS ENHANCED COMPLETIONS LEADING TO BETTER RESULTS ROR Comparison vs. Realized Gas Price 100 2015 +20% 90 80 EUR Improvement 2013 70 Rate of Return (%) 60 2011 50 40 30% ROR price threshold has been cut in…
POWDER RIVER BASIN PREMIER POSITION WITH MULTIPLE STACKED HORIZONS Sussex Niobrara Large stacked horizon operated core Parkman Mowry Frontier position Turner Federal Unit Play Outlines (Core) CHK Leasehold 365,000 net…
POWDER RIVER BASIN SUSSEX CONTINUOUS IMPROVEMENT Average Spud to Spud Days Sussex Well Results 35 Federal Unit (Approved) 28 Sussex Core 21 CHK Leasehold 21 18 Peak 1,000 boe/d 1H 2014 2H 2014 1H 2015 2H 2015E FY 2016E (88%…
2Q15 FINANCIAL & OPERATIONAL RESULTS ADJ. EARNINGS/FDS ADJ. EBITDA PROD. and G&A EXP. ( 0.11) 600 mm 8% YOY 5.40/boe(1) ADJ. PRODUCTION LIQUIDS MIX(3) ADJ. OIL PRODUCTION 13% YOY (2) 28% of Total Production 11% YOY…
RECONCILIATION OF ADJUSTED EARNINGS PER SHARE ( in mm) Three Months Ended: 6/30/2015 6/30/2014 Net income available to common stockholders (4,151) 145 Adjustments, net of tax: Unrealized (gains) losses on commodity derivatives 220…
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