BANK OF AMERICA MERRILL LYNCH 2018 GLOBAL ENERGY CONFERENCE Doug Lawler President and Chief Executive Officer
ACCELERATES CHESAPEAKES STRATEGIC PLAN Acquisition of WildHorse Margin Enhancement Increases margins from high-value oil production Free Cash Flow Accelerates transition to positive free cash flow Long Term Net Debt /…
ACCELERATING VALUE, (1) DELIVERING ON OUR PROMISES 170 160165 30 130 125130 Enhances Improves 19 25 80 oil mix percentage bbls/d % oil oil production approximately approximately 2x by 2020 (2) CHK18E PF19E…
SUBSURFACE CONFIDENCE, REDUCING UNCERTAINTY History of Eastern Eagle Ford Activity Extensive knowledge Deep regional knowledge of Eastern Eagle Ford Well defined, low-risk subsurface elements Production aligns with mapped subsurface…
CREATING AN EAGLE FORD POWERHOUSE ACREAGE POSITION Well understood geology similar to existing CHK position WildHorse Leasehold B CHK Leasehold High on the learning curve Eagle Ford Play Learnings from more than 2,000 Eagle Ford…
SUBOPTIMAL SPACING DEGRADES 2018 WILDHORSE WELL PERFORMANCE WRD TIL Composition Nearly half of 2018 WRD TILs are 100% 90% Austin Chalk or downspaced Eagle Ford 80% 70% Versus 20% in 2017 60% 50% 40% 2018 WRD Eagle Ford…
COST SAVINGS CREATE SIGNIFICANT SHAREHOLDER VALUE ANNUAL SAVINGS Operational Efficiencies 50 80 million Capital Efficiencies 150 200 million Total 200 280 million Five Year Total Savings(1) 1.0 1.0 1.5 billion 1.5 billion…
CHKS D&C PERFORMANCE ADVANTAGE Operations Support Center provides 24/7 D&C Cost Per Lateral Foot drilling support Continuous monitoring of drilling performance 1,250(1) Improved geosteering = higher percentage in zone Drilling…
OPTIMIZING WELL SPACING CHK model spacing assumption currently Well Spacing Comparison(1) 1,000' and 10,000' lateral length 180 750' spacing probable over most fluid windows 160 500' spacing potential with additional evaluation…
EXTENDED LATERALS DRIVE VALUE Existing WRD Opportunity to increase NPV with extended laterals Short Laterals Largely undeveloped, contiguous position Unparalleled extended lateral experience Proven performance across all assets…
OPPORTUNITIES TO CAPTURE ADDITIONAL MARKETING SYNERGIES Significant synergies available by leveraging Chesapeakes existing crude transportation options Cooks Point Terminal Large, contiguous Eagle Ford oil position Abundant…
CHESAPEAKES VALUE OPPORTUNITY Technical and Operational Excellence Improved Capital NAV Drives Value Recovery Efficiency Impact Drilling and Completions Optimization Reduced costs through improved performance and execution…
CHK TODAY: DIVERSE & STRONG PORTFOLIO CORE POSITIONS ACROSS MULTIPLE BASINS Powder River Basin: Oil-growth Engine Marcellus: Leading the Industry Oil production will more than double in 2019 Generating 350 million in free cash…
POWDER RIVER BASIN OIL-GROWTH ENGINE Production Ramp Click to edit Ahead of Schedule takeaway Turner Leads Click to edit the Way takeaway 2.6 bboe Stacked Click toFuture, Hotspot Advantage edit takeaway Gross resource…
ACCELERATING THE TURNER Delineated BB 1 18H Turner Producing 2,725 Max boe/d Exceptional productivity (86% oil) Planned TIL Planned 2019 Well SFU 19 23H 24 Chesapeake TILs to date 1,479 Max boe/d (84% oil) Turner High GOR…
PRB PREMIER GROWTH OPPORTUNITY Progress to date Moved to Development phase of the Turner More than 5,000' of oil-rich, stacked pay opportunities Continue to appraise new formations 2018 2019 2020+ Turner spacing tests Turner…
SOUTH TEXAS FOUNDATIONAL ASSET Consistent High-Margin EBITDA Delivery 560 Million FCF(1) in 2018 1.3 bboe Multi-Zone Growth Potential Net resource size (2) Production Mix (3) 58% 22% 20% Oil NGL Natural Gas (1)…
OPTIMIZING SOUTH TEXAS DELIVERING MORE WITH LESS Expected to generate 560 million Range of Capex Estimates (/Lateral Foot)(3) free cash flow(1) in 2018 1.10 1,100 RSEG WoodMac 1,000 1.00 D&C/Lateral Foot Increased lateral…
IMPROVED OIL RECOVERY PUSHING THE ENVELOPE Oil-window opportunity 1.3 1.7x potential improvement in oil recovery Proven technology Multiple in-basin pilots and up-scaled projects Expected benefits Adds value to existing well set Lower…
ACQUISITION CREATES PREMIER DIVERSIFIED INDEPENDENT WITH SIGNIFICANT HIGH-MARGIN OIL-GROWTH RUNWAY Targeting 80%+ of future drilling and completion activity focused on high-margin oil-growth assets High-margin Oil-growth…
ACCELERATES CHKS STRATEGIC AND FINANCIAL PLAN Adds significant premier Eagle Ford asset at attractive valuation Increases cash flow generation with profitable oil growth Materially improves margins and financial profile…
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