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2Q 2019 Earnings Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Aug 6, 2019 · 22 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. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 1
    2Q 2019 EARNINGS August 6, 2019
  2. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 2
    BUSINESS STRATEGY Our strategy remains unchanged resilient to commodity price volatility Financial discipline Profitable and efficient growth STRATEGIC GOALS from captured resources Exploration Margin enhancement Business…
  3. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 3
    EXECUTING OUR STRATEGY Generating more cash with better margins EBITDAX and Capex(1) Enhancing Margins(1,2) 3.1 24% 28 27.27 2.9 2.45 2.4 16 27 20 25.50 2.4 26 2.7 15 25 2.35 17% 16% 24 2.5 22.88 2.5 15 2.3 14 23 2.4 22…
  4. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 4
    INVESTING IN OUR HIGHEST-MARGIN OPPORTUNITIES (1,2) 2019 TIL Schedule 120 100 80 60 Oil Gas 40 20 0 1Q'19 2Q'19 3Q'19E 4Q'19E Total Oil Volume (mbo/d)(2) Total Gas + NGL Volume (mboe/d)(2) 140 400 120 380 26%…
  5. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 5
    TRANSFORMING OUR DEBT MATURITY OUTLOOK Unsecured Senior Notes (millions) SEPT. 30, 2015 2,287 1,800 1,700 1,500 1,500 1,015 1,100 396 500 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 JUNE 30,…
  6. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 6
    COMMITTED TO SAFETY AND ENVIRONMENTAL LEADERSHIP HSER excellence and Total Recordable Incident Rate environmental stewardship 0.52 0.48 central to our core values 0.51 0.43 0.39 = AXPC Average (1) 0.38 A culture of continuous…
  7. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 7
    BRAZOS VALLEY STRATEGIC PORTFOLIO ADDITION Asset projected to be free cash flow positive in 2019(1) Lowered projected break-even to 39/bbl since merger Initial reservoir characterization expands oil window Overview 2019…
  8. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 8
    DELIVERING COST SAVINGS TARGETS BRAZOS VALLEYS 180-DAY UPDATE PROJECTED ANNUAL SAVINGS(1) 2019E SAVINGS(2) Operational Efficiencies 50 80 million 90 100 million Capital Efficiencies 150 200 million 160 180 million Total 200 280…
  9. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 9
    REDEFINING THE ECONOMICS OF THE PLAY Oil Production (mbo/d)(1) Peak Rate of Oil Wells by TIL Date (boe/d)(1) 50 44 46 1,000 930 45 30% 900 40 37 773 34 800 increase 682 35 700 30 600 25 500 35% 20 18 increase 400 15 300…
  10. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 10
    WELLS OUTPERFORMING PAST RESULTS 1H 19 Placed seven wells to sales (1) BARWISE EF UNIT 1H with peak rates 1,000 bo/d TERRY EF UNIT 1H Peak Rate: 1,119 bo/d, 329 mcf/d Peak Rate: 1,044 bo/d, 325 mcf/d 7,623' Lateral 7,612'…
  11. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 11
    EXPANDING THE OIL OPPORTUNITY 230 locations shifted to improved performance and higher-margin MOSES/COLLINS 2 WELL PROJECT Project Max IP = 1,716 bo/d, 613 mcf/d black oil window Average GOR: 50 2,000 scf/bbl Expanded black oil…
  12. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 12
    SIGNIFICANT PROGRESS Cost savings ahead of schedule Projected 2019 total savings of 250 280 million Averaged 600k per well savings; recognized 2 million savings on certain wells Redefining economics Eagle Ford projected…
  13. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 13
    POWDER RIVER BASIN OIL GROWTH ENGINE Projected 100% oil growth in 2019(1) GP&T/boe expected to be reduced by 25% in 2019(1) Drilled first Niobrara well since 2014 Overview 2019 Activity(1) 2019 TIL Schedule(1) 2Q19…
  14. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 14
    ELIMINATING COSTS, GROWING MARGINS Turner Avg Spud-TIL Cycle Time Powder River Basin Net Oil Production vs GOR 25 21.8 116 20 85 15 GOR (scf/bbl) 25% 7,200 10.5 Net Oil 8000 Production decrease (mbo/d)10 7000 5.9 7,000…
  15. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 15
    PREMIER TURNER PERFORMANCE Basin comparison RRC 5-34-70 USA B TR 23H Avg 30 days: 2,000 bo/d* Average oil well performance is greater than peers BB 2-35-71 USA A TR 16H Avg 30 days: 1,825 bo/d* Single well production record RRC 5…
  16. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 16
    SOUTH TEXAS FREE CASH FLOW MACHINE Projected to generate 350mm in free cash flow(1) Optimized spacing and completions driving value Multi-zone high-margin oil growth potential Overview 2019 Activity(4) 2019 TIL Schedule(4)…
  17. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 17
    MARCELLUS FOUNDATIONAL ASSET Projected to generate 320mm in free cash flow(1) Ten years of drilling inventory at 1.50 1.75/mcf break-even(2) 1,150+ Marcellus locations remaining (assuming 1,350' average spacing)(3) Overview…
  18. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 18
    MAXIMIZING VALUE, DEFINING CAPITAL EFFICIENCY Capital efficiency drivers: SHUMHURST 3H Avg 30 days: 33 mmcf/d* CANNELLA 24HC (Upper) Avg 30 days: 26 mmcf/d* Proper spacing (1,200' 1,500') CANNELLA 25HC (Upper) Avg 30 days: 20…
  19. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 19
    GULF COAST CONSISTENT PERFORMANCE Projected to generate 150mm in free cash flow(1) Access to premium markets Base optimization yielding significant results Overview 2019 Activity(4) 2019 TIL Schedule(4) 2Q19 Production 751…
  20. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 20
    MID-CONTINENT GROWTH OPTIONALITY Redeployed capital to Powder River Integrating new 3D data and recent appraisal program results High-grading 2020 and 2021 program Overview 2019 Activity(3) 2019 TIL Schedule(3) 2Q19…
  21. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 21
    HEDGE POSITION CHK + BVL AS OF 7/31/19 W E I G H T E D A V E R A G E P R I C E OIL Volume (mmbbl) Hedge % Fixed Call ( per bbl) Put Swaps: 2019 13.7 60% 60.20 2020 12.9 59.21 Collars: 2019 2.9 13% 67.75 58.00 2020 1.8 83.25…
  22. 2Q 2019 Earnings Presentation – Chesapeake Energy Corp – slide 22
    CORPORATE INFORMATION Headquarters Publicly Traded Securities Cusip Ticker 6.625% Senior Notes due 2020 165167CF2 CHK20A 6100 N. Western Avenue Oklahoma City, OK 73118 165167BU0 6.875% Senior Notes due 2020 165167BT3 CHK20 WEBSITE:…

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