BARCLAYS CEO ENERGY-POWER CONFERENCE September 8, 2016
OUR STRATEGY RELEVANT THROUGH COMMODITY PRICE CYCLES Financial Discipline Profitable and Efficient Growth Balance capital expenditures From Captured Resources with cash flow from operations Develop world-class inventory Increase…
Differential Business Improvement Operational Leadership Strength and Depth of Portfolio
CHK IS POSITIONED TO OUTPERFORM Where we have been 2012 2016 Where we are going 2016 2020 Strengthened the balance sheet, Leverage portfolio strength and reduced complexity and legacy depth to drive efficient growth commitments…
REDUCED TOTAL LEVERAGE AND COMPLEXITY Chesapeake continues to 25,000 Credit Facility simplify the business: Secured Loans & Notes VPPs Eliminated finance leases, subsidiary 21,537 Subsidiary Preferred Equity Unsecured Notes…
PROACTIVE LIABILITY MANAGEMENT INDUSTRY-LEADING DEBT REDUCTION SINCE 1/1/2013 34% reduction = 4.4 billion In debt principal reduction 6,000 5,000 Debt Increase/Reduction (mm) 4,000 3,000 2,000 1,000 0 (1,000)…
REDUCTION IN 2017 MATURITIES 3,500 3,091 (1) 3,000 Available Liquidity 37% reduction In maturities from 9/30/15 to 6/30/16 2,500 2,210 2,000 70% reduction Pro forma from current tender offer 1,168 1,500 1,382 (2)…
BARNETT EXIT AND WILLIAMS RENEGOTIATION STRENGTHENING THE FOUNDATION OF THE BUSINESS Barnett 1.9 billion of midstream commitments Together, these transactions expected to be eliminated are expected to provide: Chesapeake agreed to…
CAPITAL EFFICIENCY HOLDS PRODUCTION FLAT DESPITE ASSET DIVESTITURES OF 16+ BILLION Spending 10% of 2012 capex program while producing equivalent volumes 16+ billion in divestitures led to 50% reduction in total leverage Relatively…
SIGNIFICANT REDUCTIONS IN CASH COSTS Industry-leading cash cost structure: Relentless focus on cost management Cash Costs (/boe) (1)(2) Operational leadership and technical 7.80 capabilities provide industry-leading production…
HAYNESVILLE SHALE GAME-CHANGING SHIFT IN ECONOMICS Completions optimization and extended CA 1H CA 2H 38 MMcfd & 7,450 psi; 23 MMcfd & 7,400 psi; 25 psi/day drawdown 1,600 lbs/ft proppant 3,000 lbs/ft proppant PCK 2H laterals…
EAGLE FORD SHALE EXTENDED LATERALS KEY TO REDUCING DEVELOPMENT COST Lateral Length (1) Strategic shift to longer laterals 10,500' 9,000' 9,300' has reduced development cost per foot by 60% 5,600' 6,500' 5,300' 65% of cost…
Differential Business Improvement Operational Leadership Strength and Depth of Portfolio
UNRECOGNIZED VALUE, UNLOCKED POTENTIAL STRENGTH AND DEPTH OF PORTFOLIO 40% ROR 20% 40%…
HAYNESVILLE SHALE THE CHESAPEAKE ADVANTAGE CHK has the opportunity to develop the field with current technology Longer laterals Optimized completions Heavily Significantly enhanced returns developed competitor position…
EAGLE FORD MULTIZONE RESOURCE POTENTIAL AREAS OF INTEREST AND COMPETITOR ACTIVITY Austin Chalk Upper Eagle Ford Lower Eagle Ford Staggered Wellbores CHK South Texas Locations Drilled; 25% Remaining…
UTICA SHALE DRY GAS 2016 PROGRAM 2016 dry gas drilling program Substantial growth planned for 2017 11,500' average lateral length Favorable gas differentials 6.8mm D&C per well 93% of dry gas is sent to Gulf markets Average CHK WI…
Substantial progress on every front Strategic targets 2016 2020 Reduced total leverage by Grow production 5% 15% 50% (10.6 billion) annually Improved cash costs by Retire 2 3 billion of debt 50% per boe through asset…
CORPORATE INFORMATION HEADQUARTERS PUBLICLY TRADED SECURITIES CUSIP TICKER 6.25% Senior Notes due 2017 027393390 N/A 6100 N. Western Avenue Oklahoma City, OK 73118 6.50% Senior Notes due 2017 165167BS5 CHK17 WEBSITE: www.chk.com 7.25%…
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