CITI 2016 GLOBAL ENERGY AND UTILITIES CONFERENCE May 10, 2016
2016 KEY ACHIEVEMENTS TO DATE 1.2 billion in asset divestitures closed or under signed PSA Up from 700mm announced in February Reiterating target of 1.2 1.7 billion in asset divestitures in 2016 Amended revolving credit facility…
CHESAPEAKES FOCUS IN 2016 WHAT WE PLAN TO DO 2016 Plan 2016 Progress to Date Reduce capital budget by 50% Maximize On track to reduce capital budget by 50% YOY 10% reduction in LOE/boe Liquidity 15% reduction in G&A/boe (1)…
SIGNIFICANT PROGRESS ON ASSET DIVESTITURE GOAL 1.2 billion 35 mboe/d Expected gross proceeds from Minimal impact to 2016 production 2016 signed or closed divestitures (1) volumes (60% gas) (2) 45 million 1.2 - 1.7 billion…
MERAMEC VALUE ACCELERATION Partial Meramec monetization for 470mm accelerates significant value for shareholders Maintaining a substantial position after 2016 divestitures 52,000 acres remain in STACK corridor 1.5mm acres…
CAPITAL DISCIPLINE REMAINS FOCUS On track for 50% reduction in total capex vs. 2015 Capex down 75% in first quarter YOY Majority of 2016 projected capex focused on DUC inventory drawdown Capital Spending (1) Production (2)…
CONTINUOUS IMPROVEMENT OF CASH COSTS Quarterly Cash Costs (/boe) (1) Plan to reduce G&A by 15% 5.75 5.40 and LOE by 10% in 2016 4.87 4.64 4.14 Progress being made on both fronts in early 2016 1Q'15 2Q'15 3Q'15 4Q'15 1Q'16…
VAST U.S. ONSHORE ASSET PORTFOLIO SIGNIFICANT VALUE IN DEVELOPED AND UNDEVELOPED ACREAGE Powder River Basin 17 mboe/d net (1) Spud: 0 / TIL: 5 Marcellus Shale 144 mboe/d net (1) Spud: 0-5 / TIL: 20 Utica Shale (2) 146 mboe/d net…
CONTINUOUS IMPROVEMENT IN CAPITAL EFFICIENCY Continually improved Mid-Continent Eagle Ford Shale F&D cost across the portfolio (1) 37% 34% 22 26 18 21 Significant 14 14 15 17 improvements forecasted for 2016 2012 2013 2014…
HAYNESVILLE SHALE LONGER LATERALS DRIVING EFFICIENCY 4,000 Longer Lateral Productivity (1) Cumulative Gas (MMcf) 23% decrease in projected 3,500 3,000 D&C costs in 2016 vs. 2015 2,500 2,000 1,500 Long laterals provide 63%…
EAGLE FORD SHALE CAPITAL EFFICIENCY DRIVING COMPETITIVE RETURNS Lateral Length Outstanding well performance to 12,000 10,500 Lateral Length (ft.) 10,000 9,000 date for extended lateral program 8,000 6,500 6,500 5,600 6,000…
THE TRANSFORMATION CONTINUES Maximize Liquidity: 2016 capital spend is down more than 50% Optimize Portfolio: 1.2 billion in asset divestitures signed YTD Increase EBITDA: Reduce costs and work to restructure contracts Debt…
REVOLVER CREDIT FACILITY AMENDMENT Revolving credit facility capacity affirmed at 4 billion Facility will not be subject to another redetermination until June 2017 Senior secured leverage ratio suspended through September 2017…
27% REDUCTION IN 2017 MATURING/PUTTABLE DEBT 2,500 From 9/30/2015 through 3/31/2016, reduced 2,220 2017 maturing/puttable debt obligations by 2,000 600mm 1,625 (1) 1,500 1,168 500mm Total incremental liquidity since…
CREDIT COLLATERAL SUPPORT Midstream collateral requirements decreasing while hedging counterparty requirements 1,097 400 increased due to higher commodity prices 1,000 350 826 300 800 733 730 250 Millions USD (1)…
HEDGING POSITION (1) NaturalGas Natural Gas(1) Oil NGL 2016 2016 2016 2016 38% 64% 69% Swaps 2.71/mcf Swaps 46.32/bbl Ethane Swaps 0.17/gal Propane Swaps 0.46/gal 73 bcf of 2017 gas volumes hedged with swaps 2.92…
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