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Corporate Presentation January 2021 – Chesapeake Energy Corp

Chesapeake Energy Corp · Jan 1, 2021 · 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. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 1
    Consistent Returns, Sustainable Future January 2021 Roadshow
  2. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 2
    Chesapeake Energy Presenters Doug Lawler Nick DellOsso, Jr. President and Chief Executive Officer since June 2013 Executive Vice President and Chief Financial Officer since Previously served as Senior VP of International and…
  3. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 3
    Company Overview
  4. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 4
    Chesapeake Today: A Fundamentally Different Company Low-cost operator built to generate sustainable free cash flow from a strong balance sheet, diverse asset base and leading ESG performance. Strong balance sheet Built to generate…
  5. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 5
    Our Pledge: Consistent Returns, Sustainable Future Preserve balance Disciplined capital FCF(2) drives value creation sheet strength reinvestment rate targeting Capital allocation Targeting 60%…
  6. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 6
    Chesapeakes Path to Emergence is Clear Milestones Achieved Milestones Remaining June 28, 2020: Voluntarily filed for Chapter 11 reorganization o Week of February 8, 2021: Finalize exit financing September 11, 2020: Filed plan and…
  7. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 7
    Restored Balance Sheet Significant liquidity Post-Emergence Capitalization ( mm) Post-petition (mm) 970(4) 2.5B borrowing base at exit (1) 1.75B revolver with 1.4B available at emergence(2), 220mm term commitments from exiting…
  8. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 8
    Deep Portfolio: Diversified Positions Across Multiple Basins 4Q20E Production Mix 4Q20E Production NGL POWDER RIVER BASIN 190,000 Net acres 80% WI // 65% NRI il O 6% 435 mboe/d 20% Appalachia 1,110 mmcf/d as G Gulf Coast 558…
  9. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 9
    Chesapeakes Industry Leadership Post Emergence
  10. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 10
    Investment-Grade Scale Chesapeake is one of the largest U.S. 1,200 independent E&Ps by production, with a geographically diversified, top-tier 1,000 asset base Q3 2020 Production (mboe/d) 800 600 445 400 200 0…
  11. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 11
    Disciplined Capital Allocation Program: 2021E Development Plan 2021E Asset Development Detail POWDER RIVER BASIN 190,000 Net acres (650mm Development Capex) 80% WI // 65% NRI 10mm Capex(1) 0 Active Rigs // 0 Wells Drilled Powder…
  12. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 12
    Marketing Contract Negotiations POWDER RIVER BASIN 58mm GP&T reduction No savings in 2021 4-year PDP MVC 4B in Contract Savings (2.1B PV10, 281mm in 2021)(1) Successfully renegotiated 15B in contracts(1) MID-CONTINENT…
  13. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 13
    Reset, Competitive Midstream Contracts Total GP&T (mm & /boe) 1,200 7.00 20% 6.00 1,000 5% 5.00 800 4.00 /boe mm 600 3.00 400 2.00 200 1.00 0 0.00 2019 2020E 2021E 2022E Appalachia Gulf Coast South…
  14. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 14
    Top-Quartile Cost Structure Total Cash Costs/boe 20 18 40% reduction 16 and still working 15.81 14 12 10 8 6 4 2 0 COG SWN PDCE CRK XEC CHK EQT FANG LPI CHK PXD PE CLR RRC CXO CPE EOG APA AR DVN SM MRO…
  15. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 15
    Significant Improvement in Cost Structure to Support Sustainable Free Cash Flow Generation 2021 Cost Guidance Meaningful Cost Reduction ( / boe) mm per/boe 28.52 Capex 670 740 4.35 4.80 Interest Expense 60 70 0.40 0.45 Implied G&A…
  16. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 16
    Balance Sheet Improved vs. IG Peers Significant reduction 4.0 x 3.5 x 3.5 x 3.0 x Net Debt / 2021E EBITDA 2.5 x 2.0 x 1.5 x 1.0 x 0.5 x 0.0 x (2) EOG CHK (1) COG PXD COP XEC DVN MRO CLR SWN FANG EQT OVV AR…
  17. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 17
    Meaningful Shift to Delivering Free Cash Flow 55 % 50 % 45 % 40 % 2021E FCF (% EBITDA) 35 % 30 % 25 % 20 % 15 % 10 % 5% 0% (1) COG COP XEC EOG CHK PXD APA DVN MRO CLR RRC EQT FANG OVV AR SWN Source:…
  18. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 18
    Leading a Responsible Energy Future 2019 Peer Company GHG Intensity Our path to achieving net zero direct GHG emissions by 2035 60 kg CO2e/gross boe produced 50 Environmental Stewardship 40 Eliminate routine flaring on all wells…
  19. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 19
    CHK Scope 1 and 2 GHG Metrics SCOPE 1 SCOPE 2 Methane intensity/ GHG intensity(2) GHG intensity(3) GHG intensity(2) scf (1) Total GHG Intensity(2) Scope 2 3% 2019 0.17% 8.2 0.06 0.27 2018 0.16% 7.2 2017 0.19% 9.1 Scope 1 97%…
  20. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 20
    2019 Emissions by Operator Source: Enverus December 2020 Play by Play Conference. PXD and MGY assumes 2018 data. Consistent Returns, Sustainable Future January 2021 21
  21. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 21
    Chesapeake Today: A Fundamentally Different Company Low-cost operator built to generate sustainable free cash flow from a strong balance sheet, diverse asset base and leading ESG performance. Strong balance sheet Built to generate…
  22. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 22
    Appendix
  23. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 23
    Hedging Program Reduces Risk, Protects Returns Locked in 90% % of Gas Vol % of Oil Vol 79% 70% 80% 70% 73% of forecasted 59% 60% volumes for 2021 50% 40% Average Hedged Price 2021 2022 29% 30% Gas (/mcf) 2.69 2.50…
  24. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 24
    Gas Assets: Appalachia and Gulf Coast 4Q20E Production: 4Q20E Production: 1,110 mmcf/d (0.50)/mcf annual average 558 mmcf/d (0.18)/mcf annual average in-basin to NYMEX pricing in-basin to NYMEX pricing Gas 100% Premium realizations…
  25. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 25
    South Texas 4Q20E Production: 84 mboe/d +0.15/mcf, +0.30/bbl oil, and +0.15/bbl NGL annual average in-basin to NYMEX pricing NGL 19% Eliminated processing and crude MVCs, only gas gathering MVCs remain 54% Oil Gas 26% 20% of 4Q20E…
  26. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 26
    Brazos Valley 4Q20E Production: 41 mboe/d (0.50)/mcf, (0.75)/bbl oil, and (8.30)/bbl NGL annual average in-basin to NYMEX pricing NGL 10% Gas 16% Eliminated all MVCs 74% Oil 10% of 4Q20E production Gas GP&T (/mcf) Oil GP&T…
  27. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 27
    Powder River Basin 4Q20E Production: 22 mboe/d (0.05)/mcf, (2.25)/bbl oil, and (4.15)/bbl NGL annual average in-basin to NYMEX pricing NGL 16% MVC/EBITDAX recoupment converted to straight MVC, four years, 90% of PDP 45% Oil Gas…
  28. Corporate Presentation January 2021 – Chesapeake Energy Corp – slide 28
    Reconciliation of Net Cash from Operating Activities to Adj. EBITDAX CHESAPEAKE ENERGY CORPORATION RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED EBITDAX ( in millions) (unaudited) Years Ended December 31,…

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