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February 2018 Corporate Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Feb 12, 2018 · 28 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. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 1
    CHESAPEAKE ENERGY: THE TRANSFORMATION AND THE FUTURE Doug Lawler President and Chief Executive Officer
  2. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 2
    UNCONVENTIONAL TRAILBLAZER The Early Years CHK: The Transformation & The Future 3
  3. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 3
    PRODUCTION AND DEBT Entered Niobrara Entered Entered Barnett Utica Entered Fayetteville Entered Entered Haynesville Marcellus Entered 1989 2000 Entered Oklahoma Eagle Ford Permian focused E&P CHK: The Transformation &…
  4. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 4
    COMPLEXITY ACROSS ALL ASPECTS OF THE COMPANY 21.25 billion Companies CHK owned or invested in: Total leverage 45,400 gross wells Interests 7 joint ventures With 5 different companies 10 VPPS 12,000 employees…
  5. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 5
    The Transformation CHK: The Transformation & The Future 6
  6. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 6
    THE GREATEST CHALLENGE IN THE INDUSTRY + + + + LOW HIGH CASH HIGH POOR HIGH MARGINS COSTS DEBT CAPITAL TRANSPORTATION EFFICIENCY COSTS In 2013, by any measure, a bottom-quartile-performing company CHK: The Transformation…
  7. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 7
    CHK: The Transformation & The Future 8
  8. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 8
    CORE VALUES Integrity and trust Respect BUSINESS STRATEGIES Transparency and open communication Financial discipline Commercial focus Profitable and Change leadership efficient growth from captured resources Exploration…
  9. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 9
    THE TRANSFORMATION BEGINS Focused on Volume Focused on Value TRANSFORMATION TEAMS: 2 most active driller in the U.S. Peak rig count = 180 Organizational Structure Financial & Corporate Planning 1 driller of horizontal shale wells…
  10. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 10
    BEST-IN-CLASS EH&S PERFORMANCE PROTECTING THE PROTECTING OUR REGULATORY ENVIRONMENT EMPLOYEES COMPLIANCE LEADER Reportable Spills Total Recordable Notice of Regulatory Violations Incident Rate Incident Count (1) 1.47 304 1,929…
  11. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 11
    CAPITAL EFFICIENCY DEFINED 800 Equivalent Production and Capex 16.00 700 14.00 600 12.00 Net Production (mboe/d) Capex ( billions) 500 10.00 400 8.00 300 6.00 200 4.00 100 2.00 0 0.00 2012 2013…
  12. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 12
    CASH COST LEADERSHIP Production Expense 1,400 5.00 1,200 1,000 4.00 LOE ( millions) LOE (/boe) 800 3.00 600 2.00 400 1.00 200 0 0.00 2012 2013 2014 2015 2016 2017E Sources: S&P Capital IQ, Company…
  13. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 13
    CASH COST LEADERSHIP G&A 600 2.50 500 2.00 G&A ( millions) 400 G&A (/boe) 1.50 300 1.00 200 0.50 100 - - 2012 2013 2014 2015 2016 2017E CHK: The Transformation & The Future 14
  14. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 14
    OPTIMIZING DOWNSTREAM COMMITMENTS 6.7 billion reduction 1.20/boe reduction In midstream and marketing In cash cost structure commitments since 2014 GP&T/BOE () GP&T Commitment ( millions) 1,339 8.55 1,096 1,062 990 7.98 894…
  15. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 15
    DEBT MATURITY PROFILE 9.2 billion 7.10% 781mm (1) Senior Notes & Term Loan WACD Revolving Credit Facility (1) 3,000 2,500 2,245 Convertibles(2) REF 2015 OUTLOOK 2,000 1,800 1,700 Other Senior Notes Convertibles…
  16. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 16
    EVOLUTION OF THE TRANSFORMATION Where We Have Been 11.2 billion Created best-in-class Code of Conduct Since 2012, reduced total and Supplier Code of Conduct leverage (50% decrease) Established risk-based compliance 6.7 billion…
  17. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 17
    The Future CHK: The Transformation & The Future 18
  18. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 18
    PREMIER, DIVERSIFIED ASSET BASE World-class gas assets Appalachia North Appalachia South Gulf Coast CHK: The Transformation & The Future 19
  19. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 19
    PREMIER, DIVERSIFIED ASSET BASE Emerging oil-growth assets Eagle Ford Mid-Continent Powder River CHK: The Transformation & The Future 20
  20. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 20
    DEPTH AND CAPABILITY OF THE PORTFOLIO Locations 35% 4,950,000 Drilled Remaining Net Acres 65% Average IP 60 BOE Production Per Well by First Prod Year APPALACHIA SOUTH EAGLE FORD 80,000 60,000 60,000 40,000 40,000 20,000…
  21. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 21
    BUSINESS STRATEGIES Our strategy remains unchanged resilient to commodity price volatility Financial discipline STRATEGIC PRIORITIES Profitable and efficient growth from captured resources 1 Debt reduction Exploration of 2 3…
  22. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 22
    RECENT PROGRESS ON OUR PRIORITIES Signed three separate sales agreements totaling 593,000 boe 500mm per day Q4 2017 production Expected to close mid-2018 Achieved Q4 2017 goal of Monetized a portion 100,000 barrels of FTSI…
  23. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 23
    STOCK PRICE PERFORMANCE 100 75 50 25 0 -25 -50 -75 -100 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 CHK Gas NG1 Oil CL1 Source: Bloomberg CHK: The Transformation…
  24. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 24
    CHESAPEAKE ENERGY: THE UNCONVENTIONAL LEADER A Transformed Company Leadership attributes Capital efficiency Operational excellence Portfolio depth Technology EH&S excellence Undervalued currency CHK: The Transformation &…
  25. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 25
    Appendix CHK: The Transformation & The Future 26
  26. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 26
    REDUCING TOTAL LEVERAGE AND COMPLEXITY Chesapeake continues to simplify the business: SINCE JAN 2013 Eliminated finance leases, subsidiary preferred equity 50% reduction and eight VPPs In total net leverage Optimizing the capital…
  27. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 27
    LOW-COST OPERATOR CHK remains a cash cost leader after halving costs over the last five years 80% of its peers have higher cash cost than CHK Cash Costs/BOE () as of Q3 2017 18.00 16.00 14.00 12.00 10.00 8.00 6.00…
  28. February 2018 Corporate Presentation – Chesapeake Energy Corp – slide 28
    CAPITAL EFFICIENCY 2016 Proved F&D Costs 2016 Proved F&D Costs 6 mcf to 1 boe 15 mcf to 1 boe 30 35 25 30 25 20 2.35/boe 20 3.40/boe /boe /boe 15 15 10 10 5 5 0 0 Operational leadership and technical…

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