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February 2021 Investor Presentation – Chesapeake Energy Corp

Chesapeake Energy Corp · Feb 9, 2021 · 26 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 2021 Investor Presentation – Chesapeake Energy Corp – slide 1
    Consistent Returns, Sustainable Future February 9, 2021
  2. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 2
    Disclaimers FORWARD-LOOKING STATEMENTS This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All…
  3. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 3
    Company Overview Consistent Returns, Sustainable Future February 9, 2021
  4. February 2021 Investor Presentation – 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. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 5
    Our Pledge: Consistent Returns, Sustainable Future Preserve balance Disciplined capital (2) sheet strength reinvestment rate targeting 2B of FCF Targeting 60% 70% projected over next five years provides flexibility to enhance…
  6. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 6
    Deep Portfolio: Diversified Positions Across Multiple Basins 4Q20E Production POWDER RIVER BASIN APPALACHIA 190,000 Net acres 540,000 Net acres 80% WI // 65% NRI 10mm Capex (1) 0 Active Rigs // 0 Wells Drilled 40% WI // 35% NRI 300mm…
  7. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 7
    Restored Balance Sheet Significant liquidity Post-petition (mm) 2.5B borrowing base at exit 1.7B(1) available at emergence 500 500 Expected substantial FCF targeted to result in revolver undrawn by year end 2021 (4) 221 Cash…
  8. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 8
    Balance Sheet Improved vs. IG Peers 4.0 x Significant reduction…
  9. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 9
    Investment-Grade Scale Chesapeake is one of the largest U.S. 1,200 independent E&Ps by production, with a geographically diversified, 1,000 top-tier asset base Q3 2020 Production (mboe/d) 800 600 445 445 400…
  10. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 10
    Marketing Contract Negotiations POWDER RIVER BASIN 58mm GP&T reduction No savings in 2021 4-year PDP MVC 4B in Contract Savings (2.2B PV-10, 281mm in 2021) Successfully renegotiated or rejected 15B in contracts MID-CONTINENT…
  11. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 11
    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…
  12. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 12
    Significant Improvement in Cost Structure to Support Sustainable Free Cash Flow Generation Meaningful Cost Reduction (/boe) 2021 Cost Guidance mm per/boe 28.52 Capex 670 740 4.35 4.80 Interest Expense 60 70 0.40 0.45 Implied G&A 180…
  13. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 13
    Top-Quartile Cost Structure Total Cash Costs/boe 40% reduction 18 and still working 15.81 16 14 12 10 9.75 8 6 4 2 0 COG SWN CRK XEC CHK CHK CHK EQT FANG PXD CLR RRC CPE EOG APA AR DVN SM MRO OVV COP WPX…
  14. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 14
    Meaningful Shift to Delivering Free Cash Flow 55 % 50 % 45 % 40 % 2021E FCF (% EBITDA) 35 % 30 % 25 % 20 % 15 % 10 % 5% 0% COG COP XEC EOG CHK (1) CHK PXD APA DVN MRO CLR RRC EQT FANG OVV AR SWN Source:…
  15. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 15
    Leading a Responsible Energy Future 2019 Methane Intensity Our path to achieving net-zero direct GHG emissions by 2035 volume methane emissions/volume gross gas produced 1.2% Environmental Stewardship 0.8% Eliminate routine flaring…
  16. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 16
    CHK Scope 1 and 2 GHG Metrics Scope 1 2019 GHG and methane intensity increased due to the WRD acquisition Methane intensity(1) GHG intensity(2) Post-acquisition, CHK initiated a concerted effort to 2019 0.17% 8.2 high-grade the BV…
  17. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 17
    2019 Emissions by Operator Source: Enverus December 2020 Play by Play Conference. PXD and MGY assumes 2018 data. Consistent Returns, Sustainable Future February 9, 2021 17
  18. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 18
    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…
  19. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 19
    Appendix Consistent Returns, Sustainable Future February 9, 2021
  20. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 20
    Board of Directors MICHAEL WICHTERICH, Chairman SARAH EMERSON Founder and CEO of Three Rivers Operating Company LLC President and managing principal at ESAI Energy, LLC, an energy consulting firm Most recently served as CFO of Texas…
  21. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 21
    Hedging Program Reduces Risk, Protects Returns Locked in 90% % of Gas Vol % of Oil Vol 75% 80% 70% 75% 77% 67% of forecasted 60% volumes for 2021 50% 40% Average Hedged Price 2021 2022 34% 30% Gas (/mcf) 2.69 2.53…
  22. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 22
    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…
  23. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 23
    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…
  24. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 24
    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…
  25. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 25
    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…
  26. February 2021 Investor Presentation – Chesapeake Energy Corp – slide 26
    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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