HAYNESVILLE DIVESTITURES ACCELERATING VALUE Signed PSA to divest Haynesville assets to a private buyer for 450mm 78,000 net acres (40,000 core) and 15mm projected in 2017 EBITDA; 30X multiple 250 producing wells and 30 mmcfd…
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 Focus In 2017 Strategic Targets In 2017 And Beyond
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…
UNRECOGNIZED VALUE, UNLOCKED POTENTIAL POWER OF THE PORTFOLIO 11.3 BBOE Total net recoverable resources 5,600 locations Above 40% ROR(1) Risked locations Proven reservoirs Downspacing upside Tremendous exploration and…
Differential Business Improvement Operational Focus In 2017 Strategic Targets In 2017 And Beyond
SOUTH TEXAS ASSET OVERVIEW UNDRILLED ACREAGE, POSITIONED FOR GROWTH 270,000 Net Acres in Eagle Ford 99% HBP/ HBO Secure acreage position Best-in-class operations Extended laterals are working 3 4 rigs Active in 2017 Austin…
ACCELERATING VALUE USING EXTENDED LATERALS CURRENT EAGLE FORD RESULTS BEATING TYPE CURVE EXPECTATIONS West Four Corners Performance 160 Beating the type curve 11 of 13 extended lateral wells are Extended Lateral Wells (9,000')…
TRANSFORMING THE LOWER EAGLE FORD EXTENDED LATERALS UNLOCK VALUE IN LOW PRICE ENVIRONMENT Well Cost vs. Production IP (1) 1,800 Lazy A Cotulla G 4H 1,600 LL: 10,547' Lazy A Cotulla G 5H LL: 10,563' 1,400 Valley Wells C 4H…
MID-CONTINENT BRIDGE TO OIL GROWTH Shift from historical plays to new 1.5mm Net Acres in Mid-Continent concepts and formations Legacy acreage position offers extensive opportunity Oswego a bridge to oil production growth Actively…
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…
THE WEDGE PLAY CHESAPEAKES FUTURE MID-CONTINENT GROWTH ASSET Strong economics large land position 870,000 net acres Sharon 31-27-11 1H 94% HBP IP: 2,062 boe/d Robust economics 500 locations at 50% ROR (1,2) McCray 2414…
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…
GULF COAST WORLD-CLASS RESOURCE CHK Haynesville position is 100% HBP and only 25% developed Unique opportunity to develop field with newest technology Future Returns of the Gulf Coast (1) 70% 50% 27% 2Q '16 10,000'…
HAYNESVILLE GAME-CHANGING PERFORMANCE LONGER LATERALS AND BIGGER COMPLETIONS 3.5 New CHK wells delivering monster IPs 3 3.0 CA 1H 38 mmcf/d, 10,000' lateral PCK 1H 31 mmcf/d, 7,000' lateral WILL 1H 34 mmcf/d, 8,350' lateral…
RETURNING TO POWDER RIVER BASIN ONE MILE OF OPPORTUNITY 2.7 bboe gross recoverable resource potential 2,600 risked locations Renegotiated midstream unlocks value Teapot The next oil growth asset Parkman CHK rig returned to the…
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…
TURNER SANDSTONE PROVEN RESERVOIR UNREALIZED VALUE Same play as northern hotspot with similar rock properties and anticipated higher pressure Offset activity proves potential, but not optimized for drilling and completion…
Differential Business Improvement Operational Focus In 2017 Strategic Targets In 2017 And Beyond
RETURNING TO GROWTH PORTFOLIO STRENGTH AND OIL GROWTH WILL DRIVE MARGIN EXPANSION Total Production (mboe/d) (1) Oil Production (mbo/d) (1) 750 140 700 120 650 600 100 550 80 500 450 60 4Q'16E 4Q'17E 4Q'18E…
Substantial progress on every front Strategic targets 2016 2020 Reduced total leverage by Grow production 5% 15% 50% (10.9 billion) annually Improved cash costs by Expand margin through 50% per boe 10% - 20% annual oil growth…
INVESTOR RELATIONS UPDATE - DECEMBER 2016 25
GROWTH POTENTIAL AND FUTURE DEVELOPMENT MARCELLUS SHALE Longer laterals Optimal completion designs Substantial Upper Marcellus fairway Additional upside in Utica development Spacing Assumptions Not to Scale Upper…
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…
FLEXIBLE INVESTMENT OPPORTUNITIES STRENGTH IN OPTIONALITY UTICA High-quality and diverse position 4.00 80 Market advantages 1 2 rigs planned in 2017 3.50 70 Gas Price (/mcf) Oil Price /bbl Location Count 3.00 60…
DRY GAS GROWTH UTICA SHALE 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…
ADJUSTED PRODUCTION RECONCILIATION CUMULATIVE IMPACT OF MULTIPLE SALES TRANSACTIONS IN 2016 Production with Divestiture Adjustments (1) 800 Full impact of Barnett and Mid-Continent Partial quarter planned Devonian 700 divestitures…
HEDGING POSITION Natural Gas Oil 2017 (1) 2017 (1) 3% 3.00/3.48/mcf Collars NYMEX 71% 68% 68% 3.07/mcf Swaps NYMEX Swaps 50.19/bbl 62 bcf hedged in 2018 at an average price of 3.08 (1) As of 12/6/16, using…
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%…
Loading...
