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Credit Suisse Energy Summit – Chesapeake Energy Corp

Chesapeake Energy Corp · Feb 14, 2017 · 24 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. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 1
    2017 CREDIT SUISSE ENERGY SUMMIT February 14, 2017
  2. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 2
    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…
  3. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 3
    UNRECOGNIZED VALUE, UNLOCKED POTENTIAL POWER OF THE PORTFOLIO 6.2mm net acres Utica Shale Developed and 1,000,000 Acres undeveloped leasehold Powder River Basin 300,000 Acres Marcellus Shale Mid-Continent 715,000 Acres…
  4. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 4
    RIGHT TECHNOLOGY RIGHT ROCK MAXIMIZING VALUE WITH APPROPRIATE TECHNOLOGY Recent Completion Design Success Acid fracs Mid-Con Reduced cluster spacing Haynesville DRILLING DESIGN Sand concentration All assets Well spacing Powder…
  5. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 5
    2017 CAPITAL ALLOCATION AND FOCUS FLEXIBLE PROGRAM BUILDING FOR GROWTH IN 2018 2017 D&C Asset Funding Marcellus Shale 10 15 Spuds 50 60 TILS Powder River Basin 25 30 Spuds 28 33 TILS Utica Shale Haynesville 40 50 Spuds 20%…
  6. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 6
    SOUTH TEXAS ASSET OVERVIEW UNDRILLED ACREAGE, POSITIONED FOR GROWTH 260,000 Net Acres in Eagle Ford 99% HBP/HBO Secure acreage position Best-in-class operations Extended laterals driving value, providing strong oil growth in…
  7. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 7
    ACCELERATING VALUE WITH EXTENDED LATERALS LOWER EAGLE FORD SHALE 1,000 11,000 14,416 lateral 800 10,000 Lateral Length, feet 30-Day Oil IP, bo/d Basin drilling record in 4Q 16 9,000 600 continuing to push technological…
  8. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 8
    INDUSTRY-LEADING LONG LATERAL DEVELOPMENT RESULTS IN FASTER PAYOUTS, SHORTER CYCLE TIMES 2016 Avg 1 - Central 2013 2015 Avg East 35 Normalized Avg. Cum. Oil Avg LL: 12,600 IP30: 1,346 boe/d 30 94% Oil 25 (mbo/mm) 20 2…
  9. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 9
    MID-CONTINENT WEDGE PLAY SUCCESS APPRAISAL DRILLING YIELDS STRONG RESULTS Encouraging results Meramec Silt St. Genevieve target creates additional Wedge play opportunities Schoeppel 1H Meramec Silt (St. Genevieve) IP 30 = 977…
  10. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 10
    MID-CONTINENT OSWEGO RAPID OIL GROWTH LOW-COST, HIGH-RETURN OIL VOLUME 180% ROR (1) 1,100 boe/d 2 rigs 400 mboe EUR (83% liquid) Top 10 wells avg. IP 30 Active in 2017 drilling 60 70 wells Top 10 avg. cost 3.2mm with 55 65 TILs…
  11. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 11
    POWDER RIVER BASIN 2017 CAPITAL PROGRAM 2017 Focus Areas 2 rigs Active in 2017 drilling 25 30 wells Teapot with 28 33 TILs Parkman E, A, B/C & Deep Surrey Sussex Niobrara Turner Frontier Mowry CREDIT SUISSE…
  12. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 12
    POWDER RIVER BASIN BUILDING MOMENTUM Recent Results Upcoming 1,650 boe/d Niobrara test Turner results late Q1 early Q2 TIL 2/5/2017 (DUC) with enhanced completion design Parkman results late Q1 early Q2 70% oil Mowry results…
  13. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 13
    SUSSEX AND TURNER SANDSTONES OIL PLAYS: PROVEN RESERVOIRS UNREALIZED VALUE Sussex Sandstone Turner Sandstone Dominant, contiguous play position Same play as northern hotspot Results expected in August Results expected in May…
  14. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 14
    GULF COAST WORLD-CLASS RESOURCE Delivering monster IPs ROTC 1H CA 1H ROTC 1H 40 mmcf/d, 10,000' lateral, 5,200 lbs/ft CA 1H 38 mmcf/d, 10,000' lateral, 3,000 lbs/ft Nabors 2H 19 mmcf/d, 5,200 lateral, 5,000 lbs/ft 3 rigs…
  15. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 15
    HAYNESVILLE PAYOUTS TRANSFORMED STEP CHANGE IN SHORT-CYCLE CASH FLOW 15 10 One-year reduction (1) in payout time Longer laterals and modern completions 5 have reduced payout time by greater Net Cash Flow (mm) than one…
  16. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 16
    UTICA SHALE VALUE OPTIMIZATION 2 rigs Active in 2017 drilling 40 50 wells with 70 80 TILs Value focused (1) DUC ROR 90% (1) New drill ROR 50% 2017 Focus Areas Operational highlights Average completed lateral length…
  17. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 17
    MARCELLUS SHALE SUSTAINABLE FREE CASH GROWTH Actual Production Significant flexibility to Free cash machine 2,400 maximize with favorable pricing 2,200 Delivers 225mm in 2017(1) Limited capital required 2,000 Future 1,800…
  18. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 18
    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…
  19. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 19
    Substantial progress on every front Strategic targets 2016 2020 Reduced total leverage by Grow production 5 15% 50% (11.2 billion) annually Improved cash costs by Expand margin through 50% per boe 10 20% annual oil growth…
  20. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 20
    CREDIT SUISSE ENERGY SUMMIT - FEBRUARY 2017 21
  21. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 21
    2017 CAPITAL BUDGET 2017 Capital Budget 2017 budget of 1.9 2.5 billion 1.9 2.5B 0.2B Cap Int. 2017 investment to deliver FCF in 2018 1.65 - 1.75B 0.25B Cap Int. Lower DUC working inventory 1.7 2.3B D&C 1.4 - 1.5B…
  22. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 22
    DEBT MATURITY PROFILE Pro forma tender results, OMRs, 6.25% Euro note maturity and 6.50% 2017 redemption CREDIT SUISSE ENERGY SUMMIT - FEBRUARY 2017 23
  23. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 23
    HEDGING POSITION Natural Gas Oil NGL 2017 (1) 2017 (1) 2017 (1) 3% 7% 3.00/3.48/mcf Collars NYMEX 71% 68% 68% Swaps 3.07/mcf NYMEX Swaps 50.19/bbl Ethane Swaps 0.28/gal 120 bcf hedged in 2018 with swaps at an…
  24. Credit Suisse Energy Summit – Chesapeake Energy Corp – slide 24
    CORPORATE INFORMATION HEADQUARTERS PUBLICLY TRADED SECURITIES CUSIP TICKER 7.25% Senior Notes due 2018 165167CC9 CHK18A 6100 N. Western Avenue 3mL + 3.25% Senior Notes due 2019 165167CM7 CHK19 Oklahoma City, OK 73118 WEBSITE:…

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