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November 2017 Corporate Update – Chesapeake Energy Corp

Chesapeake Energy Corp · Nov 14, 2017 · 29 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. November 2017 Corporate Update – Chesapeake Energy Corp – slide 1
    Chesapeake Energy November 2017 Update
  2. November 2017 Corporate Update – Chesapeake Energy Corp – slide 2
    OUR STRATEGY STRONG THROUGH COMMODITY PRICE CYCLES BUSINESS STRATEGIES: Financial Discipline 2018 Priorities Business Development Focused on cash flow neutrality Profitable and Efficient Growth from Retain posture for growth…
  3. November 2017 Corporate Update – Chesapeake Energy Corp – slide 3
    WEVE MADE SIGNIFICANT PROGRESS DURING LOW AND VOLATILE COMMODITY PRICES OF 2016 2017 3.1 billion of net proceeds from asset sales Removed or extended more than 3.5 billion in 2017 2019 maturities, 432mm remain for this period…
  4. November 2017 Corporate Update – Chesapeake Energy Corp – slide 4
    OPERATIONAL MOMENTUM BUILDING INTO 2018 Results from pushing technology across the portfolio Marcellus McGavin 6H 61 mmcf/d PRB Rankin 1H 2,800 boe/d Equivalent Production and Capex STX Blakeway 2H 3,200 boe/d 800 16.0 14.7 706…
  5. November 2017 Corporate Update – Chesapeake Energy Corp – slide 5
    2017 CAPITAL ALLOCATION FLEXIBLE PROGRAM VALUE FOCUSED South Texas Oil production growth engine Eagle Ford Shale Longer laterals driving value 5 Rigs / 5 Frac Crews…
  6. November 2017 Corporate Update – Chesapeake Energy Corp – slide 6
    SOUTH TEXAS EAGLE FORD ACCELERATING VALUE WITH LONGER LATERALS South Texas F&D Cost (1) (/boe) Large remaining potential 21 17 Estimated net resources of 2.0 bboe 15 11 9 2013 2014 2015 2016 2017E Oil growth engine 10%…
  7. November 2017 Corporate Update – Chesapeake Energy Corp – slide 7
    SOUTH TEXAS UPDATE TESTING NEW COMPLETIONS DESIGNS Notable performance Vesper Unit IV DIM H 3H TIL 10/06/2017 16,194' lateral Peak rate 2,350 bo/d, 2,580 boe/d Longer laterals are paying off 60 Vesper Unit IV DIM H 3H…
  8. November 2017 Corporate Update – Chesapeake Energy Corp – slide 8
    2017 CAPITAL ALLOCATION FLEXIBLE PROGRAM VALUE FOCUSED Gulf Coast Haynesville Shale Longer laterals creating 3 Rigs / 1 Frac Crew Breakeven 2.50/mcf (1) greater value Refracs improve capital efficiency Bossier resource…
  9. November 2017 Corporate Update – Chesapeake Energy Corp – slide 9
    GULF COAST PIONEERS WITH A COMPETITIVE ADVANTAGE Average Cumulative Gas per Well 5.0 4.5 2016 2017 Average Cumulative Gas per Well (bcf) 4.0 3.5 2014 2015 3.0 2.5 2.0 2010 2013 1.5 1.0 2008 2009 0.5 0.0 0 2 4…
  10. November 2017 Corporate Update – Chesapeake Energy Corp – slide 10
    2017 CAPITAL ALLOCATION FLEXIBLE PROGRAM VALUE FOCUSED Appalachia 2 Rigs / 2 Frac Crews Marcellus Breakeven 2.10/mcf (1) Utica Dry Breakeven 2.50/mcf (1) Appalachia Optimizing stimulation designs Utica oil growth…
  11. November 2017 Corporate Update – Chesapeake Energy Corp – slide 11
    MARCELLUS SHALE THE FUTURE OF APPALACHIA DEVELOPMENT STACKED POTENTIAL Resource potential Maris pad two Upper Marcellus wells 60 mmcf/d combined peak flow rate TIL 9/01/2017, 6,700' avg. lateral Upper Marcellus Co-development…
  12. November 2017 Corporate Update – Chesapeake Energy Corp – slide 12
    UTICA ENHANCED COMPLETION UPLIFT Impact of 2017 TILs 120 Wet Gas Slickwater Completions Cumulative Volume, (mboe) 100 80 Enhanced Completions 20 25% uplift in wet gas areas Type Curve Base Design 25% increase in 120 day…
  13. November 2017 Corporate Update – Chesapeake Energy Corp – slide 13
    2017 CAPITAL ALLOCATION FLEXIBLE PROGRAM VALUE FOCUSED Mid-Continent 1 Rig / 1 Frac Crew Breakeven 40/bbl (1) Mid-Continent Deliver highly economic oil volumes Maximize base production Appraise for growth (1) Breakeven…
  14. November 2017 Corporate Update – Chesapeake Energy Corp – slide 14
    MID-CONTINENT FOCUSING THE PORTFOLIO ON TARGETED INVESTMENT Portfolio changes Raised 1.2B in proceeds Sold 1.1mm net acres Sold 4,000 operated wells Sold 7,000 non-operated wells Portfolio status Acreage: 975k net acres (97%…
  15. November 2017 Corporate Update – Chesapeake Energy Corp – slide 15
    2017 CAPITAL ALLOCATION FLEXIBLE PROGRAM VALUE FOCUSED Powder River Basin 3 Rigs / 1 Frac Crew (1)…
  16. November 2017 Corporate Update – Chesapeake Energy Corp – slide 16
    290,000 NET ACRES OF GROWTH POTENTIAL 700,000 acres of stacked potential 290,000 Net Acres in Powder River Basin 71% HBP/HBU 90% undeveloped 98% of leases cover all depths Focused on 9 operated federal units Single-operator…
  17. November 2017 Corporate Update – Chesapeake Energy Corp – slide 17
    WHY WE THE PRB One of the largest, least-developed stacked pay opportunities in the country 10+ prolific, proven formations Gross Recoverable Resource Potential 1,800+ mi2 of 3D seismic; 3,100' of whole core Prolific CHK producers…
  18. November 2017 Corporate Update – Chesapeake Energy Corp – slide 18
    NOVEMBER 2017 UPDATE 19
  19. November 2017 Corporate Update – Chesapeake Energy Corp – slide 19
    HEDGING POSITION Natural Gas Oil NGL OctDec 2017 (1) OctDec 2017 (1) OctDec 2017 (1) 11% 7% Collars 3.25/3.68/mcf NYMEX 83% 62% 72% Swaps 3.16/mcf NYMEX Swaps 50.36/bbl Propane Swaps 0.76/gal 531 bcf of 2018 gas…
  20. November 2017 Corporate Update – Chesapeake Energy Corp – slide 20
    DEBT MATURITY PROFILE 9.2 billion (1) Principal balance 10/31/2017 2,500 Current Pro Forma 2,078 2,000 Secured 1,868 815 451 1,500 1,300 1,300 Millions 1,250 1,000 1,263 1,417 665 500 380 338 53 0…
  21. November 2017 Corporate Update – Chesapeake Energy Corp – slide 21
    DEBT MATURITY PROFILE 9.2 billion 7.11% 643 million (1) Senior Notes & Term Loan WACD Revolving Credit Facility (1) 3,000 2,500 2,245 Convertibles(2) REF 2015 OUTLOOK 2,000 Other Senior Notes Convertibles millions…
  22. November 2017 Corporate Update – Chesapeake Energy Corp – slide 22
    INDUSTRY LEADING CASH COSTS CHK remains a cash cost leader after G&A/BOE () 2.26 halving costs over the last 5 years 50% reduction 1.87 The next closest peer had 2/bbl in 1.25 additional costs in 2016 0.95 1.03 2012 2013…
  23. November 2017 Corporate Update – Chesapeake Energy Corp – slide 23
    CHESAPEAKE CAPITAL EFFICIENCY RELENTLESS FOCUS ON CAPITAL DEPLOYED 2016 Proved F&D Costs (1) 2016 Proved F&D Costs (1) 6 mcf to 1 boe 15 mcf to 1 boe 60.00 70.00 50.00 60.00 50.00 40.00 40.00 /boe /boe 30.00 30.00…
  24. November 2017 Corporate Update – Chesapeake Energy Corp – slide 24
    CONTINUE TO DELIVER CAPITAL EFFICIENCIES IN A RISING SERVICE COST ENVIRONMENT South Texas Net F&D Cost* Rockies Net F&D Cost* Mid-Continent Net F&D Cost* (/boe) (/boe) (/boe) 21 18 40 39 17 15 15 14 14 15 11 24 9 20 2013…
  25. November 2017 Corporate Update – Chesapeake Energy Corp – slide 25
    CHESAPEAKE REPORTABLE SPILLS AND TRIR 250 Reportable Spills 0.6 TRIR 214 75% reduction 0.51 85% reduction 0.48 200 191 0.4 0.38 150 133 0.31 100 72 0.2 53 50 0.05 0 0 2013 2014 2015 2016 2017 through 2013…
  26. November 2017 Corporate Update – Chesapeake Energy Corp – slide 26
    3Q17 FINANCIAL AND OPERATIONAL RESULTS (1) See non-GAAP reconciliation on pages 28 and 29 (2) As of October 30, 2017 (3) Oil and NGLS collectively referred to as liquids NOVEMBER 2017 UPDATE 27
  27. November 2017 Corporate Update – Chesapeake Energy Corp – slide 27
    CHESAPEAKE ENERGY CORPORATION RECONCILIATION OF ADJUSTED NET INCOME AVAILABLE TO COMMON STOCKHOLDERS ( in millions except per share data) (unaudited) THREE MONTHS ENDED: September 30, 2017 /Diluted Share(b)(c) Net loss available…
  28. November 2017 Corporate Update – Chesapeake Energy Corp – slide 28
    CHESAPEAKE ENERGY CORPORATION RECONCILIATION OF ADJUSTED EBITDA ( in millions) (unaudited) September 30, September 30, THREE MONTHS ENDED: 2017 2016 EBITDA 345 (865) Adjustments: Unrealized (gains) losses on commodity…
  29. November 2017 Corporate Update – Chesapeake Energy Corp – slide 29
    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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