Skip to main content Analyst Day Presentation – Chesapeake Energy Corp | Shale Experts
Loading...
Pm

Analyst Day Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Oct 20, 2016 · 174 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. Analyst Day Presentation – Chesapeake Energy Corp – slide 1
    DOUG LAWLER
  2. Analyst Day Presentation – Chesapeake Energy Corp – slide 2
    2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 3
  3. Analyst Day Presentation – Chesapeake Energy Corp – slide 3
    Rediscovering Chesapeake Energy 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 4
  4. Analyst Day Presentation – Chesapeake Energy Corp – slide 4
    FINANCIAL DISCIPLINE 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 5
  5. Analyst Day Presentation – Chesapeake Energy Corp – slide 5
    2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 6
  6. Analyst Day Presentation – Chesapeake Energy Corp – slide 6
    (1) (1) 2016E represents 10/20 Outlook ranges 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 7
  7. Analyst Day Presentation – Chesapeake Energy Corp – slide 7
    BUSINESS DEVELOPMENT 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 8
  8. Analyst Day Presentation – Chesapeake Energy Corp – slide 8
    *Represents gross proceeds from asset sales 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 9
  9. Analyst Day Presentation – Chesapeake Energy Corp – slide 9
    EXPLORATION 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 10
  10. Analyst Day Presentation – Chesapeake Energy Corp – slide 10
    2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 11
  11. Analyst Day Presentation – Chesapeake Energy Corp – slide 11
    PROFITABLE AND EFFICIENT GROWTH 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 12
  12. Analyst Day Presentation – Chesapeake Energy Corp – slide 12
    (1) (1) (1) Economics assume 3/mcf and 60/bbl flat 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 13
  13. Analyst Day Presentation – Chesapeake Energy Corp – slide 13
    2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 14
  14. Analyst Day Presentation – Chesapeake Energy Corp – slide 14
    (1) (2) (1) Includes Upper Eagle Ford and Austin Chalk locations; operated gross risked locations (2) PV10 positive breakeven price assuming 3 gas price 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 15
  15. Analyst Day Presentation – Chesapeake Energy Corp – slide 15
    (1) (1) Includes all Gulf Coast locations; operated gross risked locations 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 16
  16. Analyst Day Presentation – Chesapeake Energy Corp – slide 16
    (1) (2) (1) Price deck at 3 and 60 flat (2) PV10 positive breakeven price assuming 3 gas price 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 17
  17. Analyst Day Presentation – Chesapeake Energy Corp – slide 17
    (1) (1) Operated gross risked locations 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 18
  18. Analyst Day Presentation – Chesapeake Energy Corp – slide 18
    (1) (2) (1) Operated gross risked locations (2) PV10 positive breakeven price assuming 3 gas price 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 19
  19. Analyst Day Presentation – Chesapeake Energy Corp – slide 19
    (1) (2) (1) Operated gross risked locations (2) PV10 positive breakeven price assuming 3 gas price 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 20
  20. Analyst Day Presentation – Chesapeake Energy Corp – slide 20
    2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 21
  21. Analyst Day Presentation – Chesapeake Energy Corp – slide 21
    (1) (1) 7.0mm net acres 2016 ANALYST DAY WELCOME AND COMPANY OVERVIEW 22
  22. Analyst Day Presentation – Chesapeake Energy Corp – slide 22
    WHAT YOU NEED TO KNOW Large acreage position that is largely held, so no longer drilling just to hold acreage, but drilling to deliver value We are expanding the economic core in several plays and have more remaining locations to…
  23. Analyst Day Presentation – Chesapeake Energy Corp – slide 23
    FRANK PATTERSON
  24. Analyst Day Presentation – Chesapeake Energy Corp – slide 24
    POWDER RIVER BASIN WHAT HAS CHANGED Renegotiated midstream agreement unlocks a material development opportunity Leveraged learnings throughout CHK to optimize performance Petroleum systems-based analysis provides new…
  25. Analyst Day Presentation – Chesapeake Energy Corp – slide 25
    2.7 BBOE RESOURCE POTENTIAL Resource Mix One vertical mile of opportunity 8+ stacked formations 35% 49% 2,600 risked locations 16% The next oil growth asset Oil NGL Natural Gas Net Production Potential Gross Recoverable…
  26. Analyst Day Presentation – Chesapeake Energy Corp – slide 26
    307,000 ACRES OF GROWTH POTENTIAL 90% undeveloped locations 307,000 Net Acres in Powder River Basin 80% HBP/HBU 98% of leases cover all depths 10 operated federal units Single-operator control Minimal drilling obligations…
  27. Analyst Day Presentation – Chesapeake Energy Corp – slide 27
    HOTSPOT ADVANTAGE CHK owns Southern PRB hotspot DJ Basin and Northern PRB analog Advantages of CHK hotspot position Higher pressure Greater hydrocarbon generation (maturity) Exposed to all three hydrocarbon phases DVN, EOG, etc.…
  28. Analyst Day Presentation – Chesapeake Energy Corp – slide 28
    SUSSEX SANDSTONE HIGHLY ECONOMIC OIL PLAY Moving to development Dominant position in the play Teapot 200 undrilled locations Parkman E, A, B/C & Deep Assumes 1,320' spacing Overpressured high deliverability Surrey Targeted…
  29. Analyst Day Presentation – Chesapeake Energy Corp – slide 29
    SUSSEX SANDSTONE BEST IN BASIN Best Sussex performance in the Powder River Basin Development plan optimized Spacing Drilling and completion design Competitive economics in current environment Best Sussex in the PRB 1 PRB…
  30. Analyst Day Presentation – Chesapeake Energy Corp – slide 30
    TURNER SANDSTONE PROVEN RESERVOIR UNREALIZED VALUE Same play as northern hotspot with similar rock properties and anticipated higher pressure 300 industry wells drilled to date One of the most actively permitted sandstones in the…
  31. Analyst Day Presentation – Chesapeake Energy Corp – slide 31
    TURNER SANDSTONE PROVEN RESERVOIR UNREALIZED VALUE CHK controls 65% of southern high-grade Teapot CHK position overlies thickest net pay Parkman E, A, B/C & Deep 340 undrilled locations Assumes 2,640' spacing Surrey…
  32. Analyst Day Presentation – Chesapeake Energy Corp – slide 32
    NIOBRARA POSITIONED FOR SUCCESS Premier Niobrara position in the PRB Oil, gas and condensate provides Teapot flexibility Parkman E, A, B/C & Deep 580 undrilled locations Assumes 1,100' 1,320' spacing Surrey Targeted…
  33. Analyst Day Presentation – Chesapeake Energy Corp – slide 33
    MOWRY SHALE HIDDEN RESOURCE GIANT World-class source rock Teapot Overpressured Three phases present Parkman E, A, B/C & Deep Multiple penetrations and core data available Surrey 25 horizontal wells drilled by Sussex…
  34. Analyst Day Presentation – Chesapeake Energy Corp – slide 34
    MOWRY SHALE HIDDEN RESOURCE GIANT Positive Correlation of Proppant vs. EUR/ft. (1) Mowry compares favorably to other prolific source rocks Strong relationship between competitor frac size and EUR Large upside with…
  35. Analyst Day Presentation – Chesapeake Energy Corp – slide 35
    WHY POWDER RIVER BASIN ONE MILE OF OPPORTUNITY 2.7 bboe gross recoverable resource potential 2,600 risked locations Stacked potential equivalent to 730,000 acres Teapot Renegotiated midstream unlocks value Parkman Significant…
  36. Analyst Day Presentation – Chesapeake Energy Corp – slide 36
    APPENDIX 2016 ANALYST DAY POWDER RIVER BASIN 15
  37. Analyst Day Presentation – Chesapeake Energy Corp – slide 37
    MOWRY SHALE HIDDEN RESOURCE GIANT CHK Mowry maturity 20% 30% higher than northern Mowry Strong correlation with completion size and performance Positive Correlation of Proppant vs. EUR/ft. (1) (1) IHS data 2016 ANALYST DAY…
  38. Analyst Day Presentation – Chesapeake Energy Corp – slide 38
    PARKMAN SANDSTONES HIGH VOLUME OIL PLAYS Extensive play development to north BC sand produced by DVN and EOG CHK controls the southern extension of the Parkman BC trend Similar rock quality and thickness to that in the northern…
  39. Analyst Day Presentation – Chesapeake Energy Corp – slide 39
    CHK LAND POSITION A STRATEGIC ADVANTAGE CHK dominates southern Powder hotspot Northern hotspot shared by multiple competitors (1) (1) Competitor leasehold sourced from Drilling Info and company press releases 2016 ANALYST…
  40. Analyst Day Presentation – Chesapeake Energy Corp – slide 40
    PV10 DEVELOPMENT MONEY MAPS 2016 ANALYST DAY POWDER RIVER BASIN 19
  41. Analyst Day Presentation – Chesapeake Energy Corp – slide 41
    NET EQUIVALENT PRODUCTION POWDER RIVER BASIN: 2% TOTAL PRODUCTION 2016E 800 700 600 500 mboe/d 400 300 200 100 - 2013 2014 2015 2016E Appalachia North Appalachia South Powder River South Texas Gulf…
  42. Analyst Day Presentation – Chesapeake Energy Corp – slide 42
    POWDER RIVER MODELING INPUTS Base Production(1) Powder River Type Curve Production Profile 2000 1000 3Q16E Net Production 14 mboe/d Gas Oil NGLs Oil and NGL Rate (bbl/d) 4 Yr. Average Annual Decline(2) 24% 1600 800 Gas…
  43. Analyst Day Presentation – Chesapeake Energy Corp – slide 43
    FRANK PATTERSON
  44. Analyst Day Presentation – Chesapeake Energy Corp – slide 44
    NORTHEAST GAS POWERHOUSE Free cash flow generator High-quality and diverse position Growth potential and portfolio flexibility Operational excellence 4% of domestic gas production Access to premium markets 2016…
  45. Analyst Day Presentation – Chesapeake Energy Corp – slide 45
    UTICA SHALE THREE PHASE PETROLEUM SYSTEM 1,100,000 Net Acres in Utica Abundant opportunities Significant resource optionality Location Count Undrilled Locations Oil Drilled 30% 415 Wet Remaining Dry 790 Development…
  46. Analyst Day Presentation – Chesapeake Energy Corp – slide 46
    CHESAPEAKES MARKETING ADVANTAGES UTICA Projected Utica Net Marketed Volume (mmbtu) 900 800 700 600 500 OPEN 400 NEXUS 300 200 TGP Utica BH 100 0 TGP BH 7/1/2016 10/1/2016 1/1/2017 4/1/2017 7/1/2017 10/1/2017 1/1/2018…
  47. Analyst Day Presentation – Chesapeake Energy Corp – slide 47
    BASIN-LEADING OPERATIONAL PERFORMANCE UTICA Measured Depth Drilling Efficiency (ft.) (ft./d) 25,000 2,500 40% increase 20,000 2,000 in drilling efficiency 15,000 1,500 10,000 1,000 5,000 500 0 0 2013 2014 2015 2015 2016…
  48. Analyst Day Presentation – Chesapeake Energy Corp – slide 48
    DRY GAS GROWTH UTICA Utica Dry Locations Utica Dry Production (mmcf/d) Drilled Gas Production mmcf/d 10% Remaining Development 90% 40% ROR Average CHK WI 90% (1) 350% Production growth 2.14 Per mcf Utica Dry…
  49. Analyst Day Presentation – Chesapeake Energy Corp – slide 49
    FLEXIBLE INVESTMENT OPPORTUNITIES STRENGTH IN OPTIONALITY UTICA High-quality and diverse position Operational excellence 4.00 80 Market advantages 3.50 70 Large inventory Gas Price (/mcf) Oil Price /bbl Location…
  50. Analyst Day Presentation – Chesapeake Energy Corp – slide 50
    MARCELLUS SHALE THE PREMIER DOMESTIC GAS 795,000 Net Acres in North Appalachia Growth potential in a remarkable reservoir Operational excellence Stable free cash flow Production Mix Marcellus Locations Drilled 3.2 Tcf…
  51. Analyst Day Presentation – Chesapeake Energy Corp – slide 51
    CONTROL THE CORE MARCELLUS Dominant position CHK Core(2) Core Expansion(2) (1) 92% CHK acreage HBP HBP 93% 88% Gross 429,400 240,900 Net 277,400 148,000 CHK Core Operated Position Competition 35% CHK 65% (1)…
  52. Analyst Day Presentation – Chesapeake Energy Corp – slide 52
    GROWTH POTENTIAL AND FUTURE DEVELOPMENT Longer laterals Optimal completion designs Substantial Upper Marcellus fairway Additional upside in Utica development Spacing Assumptions Not to Scale Upper Marcellus 1,200'…
  53. Analyst Day Presentation – Chesapeake Energy Corp – slide 53
    CONTINUOUS IMPROVEMENT MARCELLUS Average Well Cost (mm) (1) 9.1 8.7 7.5 7.0 Capex: 5.0 Reduced 29% YTD 2012 2013 2014 2015 2016E Lease Operating Expense (LOE) Reduction (2) 1.94 1.96 1.95 0.08 2.0 Gross daily…
  54. Analyst Day Presentation – Chesapeake Energy Corp – slide 54
    MARCELLUS PRODUCTION STRENGTH SUSTAINABLE PRODUCTION WITH MINIMAL CAPITAL 300 mmcf/d shut-in Produce into favorable market 300 mmcf/d curtailed Available with planned wellhead Gross Daily Production (mmcf/d) pressure…
  55. Analyst Day Presentation – Chesapeake Energy Corp – slide 55
    MARCELLUS SHALE Stable free cash flow Flat production generates significant free cash flow Operational excellence Basin-leading performance Remarkable reservoir quality Massive Marcellus upside and significant base strength…
  56. Analyst Day Presentation – Chesapeake Energy Corp – slide 56
    APPALACHIA ADVANTAGE CHESAPEAKE ONE BASIN, TWO ASSETS = OUTSTANDING VALUE 2016 2018 Projected Free Cash Flow(1,2) and Production (Excluding Hedges) 500 500 500 450 700mm 450 400 In projected Appalachia FCF 400 350…
  57. Analyst Day Presentation – Chesapeake Energy Corp – slide 57
    APPENDIX 2016 ANALYST DAY APPALACHIA 15
  58. Analyst Day Presentation – Chesapeake Energy Corp – slide 58
    WORLD-CLASS RESERVOIR QUALITY MARCELLUS SHALE A prolific resource With near-term and long-term growth opportunity Upper Marcellus EUR/ft. (mcf) (1) 2,200 3,250 Lower Marcellus (Core) Thickness (ft.) 125 250 EUR/ft. (mcf) (1)…
  59. Analyst Day Presentation – Chesapeake Energy Corp – slide 59
    TREMENDOUS WELL PERFORMANCE CONTINUAL IMPROVEMENT THROUGH TECHNOLOGY 35 Increased IncreasedPotential potential 30 Well performance outperforming expectations Gas Production Rate, mmcf/d Well performance outperforming…
  60. Analyst Day Presentation – Chesapeake Energy Corp – slide 60
    NET EQUIVALENT PRODUCTION APPALACHIA: 43% TOTAL PRODUCTION 2016E 800 3 bcf/d gross 4% of U.S. gas production (1) 700 600 500 mboe/d 400 300 200 Appalachia 100 - 2013 2014 2015 2016E Appalachia North…
  61. Analyst Day Presentation – Chesapeake Energy Corp – slide 61
    MARCELLUS MODELING INPUTS Base Production(1) Marcellus Type Curve Production Profile 3Q16E Net Production 805 mmcf/d 30 Gas 4 Yr. Average Annual Decline(2) 24% 25 Gas Rate (mmcf/d) 20 15 2017 Expenses & Differential…
  62. Analyst Day Presentation – Chesapeake Energy Corp – slide 62
    UTICA DRY MODELING INPUTS Base Production(1) Utica Dry Type Curve Production Profile 18 Gas 3Q16E Net Production 85 mmcf/d 15 4 Yr. Average Annual Decline(2) 26% Gas Rate (mmcf/d) 12 9 2017 Expenses & Differential…
  63. Analyst Day Presentation – Chesapeake Energy Corp – slide 63
    UTICA WET MODELING INPUTS Base Production(1) Utica Wet Type Curve Production Profile 8000 Gas Oil NGLs 3Q16E Net Production 110 mboe/d 700 7000 Oil & NGL Rate (bbl/d) 4 Yr. Average Annual Decline(2) 25% 600 6000 Gas Rate…
  64. Analyst Day Presentation – Chesapeake Energy Corp – slide 64
    FRANK PATTERSON
  65. Analyst Day Presentation – Chesapeake Energy Corp – slide 65
    EXPLORING FOR THE FUTURE Current Exploration Opportunities 11 new basin-entry plays 15 growth opportunities in CHK-operated basins 17 prospects adding value to current HBP position Unmatched subsurface data with in-house…
  66. Analyst Day Presentation – Chesapeake Energy Corp – slide 66
    WE ARE UNCONVENTIONAL EXPERTS Current acreage In-house core 7.0 million net acres 65,000 ft. analyzed Seismic inventory 3D: 96,000 square mi. CHK core lab 2D: 328,000 mi. Accelerates exploration value Horizontal…
  67. Analyst Day Presentation – Chesapeake Energy Corp – slide 67
    CHK VALUE REALIZATION ANALYSIS TO IMPLEMENTATION IN MONTHS NOT YEARS VALUE 2016 ANALYST DAY EXPLORATION 4
  68. Analyst Day Presentation – Chesapeake Energy Corp – slide 68
    1,600,000 ACRES CHK ADVANTAGE ROME TROUGH Multi-zone stacked potential 1 to 4.5 bboe recoverable in single zone 1.4mm acres HBP/minerals Two vertical core wells drilled Competitors de-risking around CHK HBP position Access to…
  69. Analyst Day Presentation – Chesapeake Energy Corp – slide 69
    ITS NOT ALL ABOUT SHALE Our Future is Stacked Conventional sands: Red Fork, Springer Source rock plays: Eagle Ford, Haynesville Petroleum system- Low-perm clastics: Sussex, Turner based approach opens new stacked potential.…
  70. Analyst Day Presentation – Chesapeake Energy Corp – slide 70
    FRANK PATTERSON
  71. Analyst Day Presentation – Chesapeake Energy Corp – slide 71
    MID-CONTINENT IS NOT WHAT YOU REMEMBER Shift from historical plays to new 1.5mm Net Acres in Mid-Continent concepts and formations Substantial NAV value Legacy acreage position offers extensive opportunity Oswego a bridge to oil…
  72. Analyst Day Presentation – Chesapeake Energy Corp – slide 72
    MASSIVE MID-CONTINENT LAND POSITION 1.5MM ACRES IN OKLAHOMA Chesapeake % of Total Net Acres % HBP Leasehold Mid-Con Anadarko Basin 1,150,000 77% 94% Eastern Oklahoma 200,000 13% 100% OK Panhandle 150,000 10% 100% Total…
  73. Analyst Day Presentation – Chesapeake Energy Corp – slide 73
    NAV CONTINUES TO GROW Valued at 2.8 billion after 1.0 billion in 2016 asset sales Identified Exploratory New Upside Mid-Con 4 Net Asset Value (PV10 billion) Jul 2016 3 CHK Valuation (2) Jan 2016 2016 CHK Valuation (2)…
  74. Analyst Day Presentation – Chesapeake Energy Corp – slide 74
    OSWEGO DELIVERING IMPRESSIVE RESULTS 40 MILES Lightle 4-18-6 1H Hasty 3-18-6 1H IP 30 = 1,098 bo/d IP 30 = 1,235 boe/d IP 30 = 897 bo/d IP 30 = 1,033 boe/d 3.0mm/well Development cost Farrar 11-18-6 1H IP 30 = 727 bo/d 400…
  75. Analyst Day Presentation – Chesapeake Energy Corp – slide 75
    THE OSWEGO TRANSFORMATION UNLOCKING VALUE THROUGH RAPID OPTIMIZATION Increasing Performance Decreasing Costs Transformational Returns (1) 60 6 300% Cumulative Production (mbo) Total Well Capex (mm) 19% reduction 40 4…
  76. Analyst Day Presentation – Chesapeake Energy Corp – slide 76
    OSWEGO DELIVERING TREMENDOUS GROWTH 35 Gen 3 Completion 30 Gross Operated Production (mboe/d) 25 20 15 10 Type Curve Performance 5 0 01/2016 07/2016 01/2017 07/2017 1 Rig 2 Rigs High-volume, low-cost…
  77. Analyst Day Presentation – Chesapeake Energy Corp – slide 77
    MISS LIME CONTINUES TO DELIVER TREMENDOUS FUTURE OPTIONALITY Transformational strategy Shift from statistical to technical field development approach New wells selected on basis of improved subsurface technical understanding…
  78. Analyst Day Presentation – Chesapeake Energy Corp – slide 78
    THE WEDGE PLAY PROLIFIC OIL-RICH RESERVOIRS 150-mile fairway of stacked pay Wedge Play Cross Section Schematic 150 miles NORTH Miss Lime Play 425 mmboe Produced to Date The Wedge Play A geologically defined area in…
  79. Analyst Day Presentation – Chesapeake Energy Corp – slide 79
    THE WEDGE PLAY CHESAPEAKES FUTURE MID-CONTINENT GROWTH ASSET Strong economics large land position 870,000 net acres Sharon 31-27-11 1H IP: 2,062 boe/d 94% HBP Robust economics McCray 2414 1-10H/15H 500 locations at 50% ROR…
  80. Analyst Day Presentation – Chesapeake Energy Corp – slide 80
    MID-CON GROWTH ENGINE SCALABLE GROWTH FROM OSWEGO AND THE WEDGE 140 120 Gross Operated Production, mboe/d 100 80 60 40 20 0 06/2016 06/2017 06/2018 06/2019 06/2020 1 4 Rigs 4 8 Rigs Oswego Oswego Gen 3…
  81. Analyst Day Presentation – Chesapeake Energy Corp – slide 81
    MOST UNDERVALUED ROCK IN THE U.S. Current value of 2.8 billion plus upside 1.5 million acres 95% HBP Oswego generating industry-leading economics 500 Wedge locations with 50% ROR (1) Evaluating 15+ horizons for future growth…
  82. Analyst Day Presentation – Chesapeake Energy Corp – slide 82
    APPENDIX 2016 ANALYST DAY MID-CONTINENT 13
  83. Analyst Day Presentation – Chesapeake Energy Corp – slide 83
    NET EQUIVALENT PRODUCTION MID-CONTINENT: 11% TOTAL PRODUCTION 2016E 800 600 mboe/d 400 200 - 2013 2014 2015 2016E Appalachia North Appalachia South Powder River South Texas Gulf Coast Mid-Continent Central…
  84. Analyst Day Presentation – Chesapeake Energy Corp – slide 84
    OSWEGO MODELING INPUTS Base Production(1) Oswego Type Curve Production Profile 800 800 3Q16E Net Production 3 mboe/d Gas Oil NGLs 700 700 Oil and NGL Rate (bbl/d) 4 Yr. Average Annual Decline(2) 33% 600 600 Gas Rate…
  85. Analyst Day Presentation – Chesapeake Energy Corp – slide 85
    WEDGE AND MISS LIME MODELING INPUTS Base Production(1) The Wedge Type Curve Production Profile 1800 400 3Q16E Net Production 52 mboe/d Gas Oil NGLs 1600 350 Oil and NGL Rate (bbl/d) 4 Yr. Average Annual Decline(2) 13% 1400…
  86. Analyst Day Presentation – Chesapeake Energy Corp – slide 86
    JASON PIGOTT
  87. Analyst Day Presentation – Chesapeake Energy Corp – slide 87
    Operations Services Drilling Completions
  88. Analyst Day Presentation – Chesapeake Energy Corp – slide 88
    CHESAPEAKES COMPETITIVE ADVANTAGE Option 1 Industry-Leading Operations Support 24x7 real-time monitoring Advanced processing technology High-volume, high-variety, high-velocity data analytics Collaborative environment…
  89. Analyst Day Presentation – Chesapeake Energy Corp – slide 89
    BETTER PLANNING REDUCES TROUBLE TIME Better well planning and continuous monitoring dramatically reduce trouble time 400 Well road maps predict problems before 350 they happen Collaborative culture improves response 300 time…
  90. Analyst Day Presentation – Chesapeake Energy Corp – slide 90
    MAINTAINING TARGET ACCURACY IN LONGER LATERALS Continuous monitoring maintains 9,000 100% targeting accuracy Minimizes impact on well recovery 8,500 when drilling longer laterals 8,000 95% 14' 50' 7,500 Typical target…
  91. Analyst Day Presentation – Chesapeake Energy Corp – slide 91
    Operations Services Drilling Completions
  92. Analyst Day Presentation – Chesapeake Energy Corp – slide 92
    CHESAPEAKE DRILLING PREDICTABLE, REPEATABLE, PERFORMANCE LEADER The Chesapeake Drilling Advantage Operations Support Extensive extra-long-lateral experience Center State-of-the-art real-time operations center EHS Simulation…
  93. Analyst Day Presentation – Chesapeake Energy Corp – slide 93
    DRILLING COMPETITIVE ADVANTAGES 10 RIGS IS THE NEW 35 RIGS AT CHESAPEAKE 377 Lateral Footage Drilled Per Rig (1,000 ft.) 89% 2013 268 2014 45% 2015 2016E 200 186 160 93 53% 81 113% 101 65 73 53 48 36 41 44 24…
  94. Analyst Day Presentation – Chesapeake Energy Corp – slide 94
    EAGLE FORD SHIFT TO LONGER LATERALS A CRUCIAL VALUE-CREATION DECISION Average Lateral Length (ft.) 8,000 ' 2013 2014 2015 2016 6,000 ' 4,000 ' 2,000 ' 0 Chesapeake Anadarko Conoco Devon EOG EP Energy Marathon…
  95. Analyst Day Presentation – Chesapeake Energy Corp – slide 95
    Operations Services Drilling Completions
  96. Analyst Day Presentation – Chesapeake Energy Corp – slide 96
    SUPERIOR OPERATIONAL EFFICIENCIES EAGLE FORD SHALE Single-Day Record Continuing to break efficiency records 2017E Avg. 2016 YTD Avg. 2015 Avg. 2014 Avg. Stages/Day Multiwell Frac Chasing Perfection 1 frac crew + 2…
  97. Analyst Day Presentation – Chesapeake Energy Corp – slide 97
    HAYNESVILLE COMPLETION OPTIMIZATION ITS A WHOLE NEW BALL GAME Vintage Modern Prop-a-geddon 1,500 lbs./ft. 1,750 lbs./ft. 3,000 lbs./ft. Pre 2012 2015 Current More Productivity for Your Dollar Proven Results from Optimization…
  98. Analyst Day Presentation – Chesapeake Energy Corp – slide 98
    OSWEGO COMPLETION OPTIMIZATION MORE SAND ISNT ALWAYS THE ANSWER Generation 3 Next Generation Generation 1 Generation 2 Propped frac Diverting acid frac Large volume acid frac Large volume Uncemented sleeves Uncemented sleeves…
  99. Analyst Day Presentation – Chesapeake Energy Corp – slide 99
    PROVEN RESULTS LEAD TO HUGE SUCCESS Completions Cost per Foot 1.8 billion saved Total gross cost savings since 2013 600 557/ft. 529/ft. 500 463/ft. 50% reduction 400 In completion cost per foot since 2013 300 278/ft. 200…
  100. Analyst Day Presentation – Chesapeake Energy Corp – slide 100
    DELIVERING VALUE THROUGH STANDARDIZATION, PLANNING AND DESIGN Standard Surface Construction Operations Concurrent Surface Construction Activities Drilling and Field Fabrication Turn-in-line (TIL) Drilling and Turn-in-line (TIL)…

Showing the first 100 of 174 slides. Open the presentation viewer for the full deck.

From the store

Browse maps, data & reports in the Shale Experts store