Answering the Call for Affordable, Reliable, Lower Carbon Energy 2Q 2022 EARNINGS / AUGUST 2, 2022
Premium Returns, Inventory and Balance Sheet Most Compelling Natural Gas Opportunity STRATEGIC PILLARS Most efficient operator, returning more cash Superior Capital Returns to shareholders than any other gas peer in the U.S. Deep,…
2Q22 Highlights Continued repurchase program Dividend payable Base dividend increased by 670mm 2.32 10% of 2B authorization used through 7/31 per share in Sept. 2022 to 2.20 per share annually (1) (1) Adjusted free cash flow…
Premier Natural Gas Operator Best Capital Efficiency Chesapeake has 17 of Highest 20 IP90s in North America 2018 2021 Average Capex/12-Month Production 2022 Wells First 3 Month Gas Production (2) /mcfe(1) mmcf/d 3.05 2.95 2.85…
Best-in-Class Shareholder Return Program Base dividend increased by 10% to 2.20 per share annually 2022E Implied Capital Return Yields(1,2,3) 2.32 per share quarterly dividend payable in September 0.55 base dividend 17.4% Buyback…
2022 Operating Plan 22E Activity 2Q22 Actual and 2022E Projected Results 2Q22 3Q22E FY22E Marcellus Gas Production (bcf/d) 3.7 3.7 3.8 3.6 3.7 650,000 net acres Oil Production (mbo/d) 50 50 54 51 56 50% WI, 40% NRI 4 5…
Marcellus: Premium Scale, Leading Returns Basin leading capital efficiency Gross Inventory by Breakeven 16 years of drilling using 3 5 rigs 14 16 16 16 18 Years of inventory at current pace(3) 2022E BU EBITDAX 4.0B 4.1B (1,2)…
Marcellus: Premium Scale, Leading Returns Asset Overview 2Q22 3Q22E FY22E Marcellus Sales Points Net Production (bcf/d) 1.96 1.95 2.05 1.9 2.0 HISTORICAL DEDUCT CURRENT DEDUCT MARCELLUS TOTAL FROM NYMEX ()(1) FROM NYMEX ()(1)…
Haynesville: Profitable Growth, Advantaged Markets Basin leading capital efficiency Gross Inventory by Breakeven 15 years of drilling using 6 9 rigs 9 12 12.5 15 18 Years of inventory at current pace(3) 2022E BU EBITDAX 3.3B 3.4B…
Haynesville: Poised for Growth Moving from maintenance capital of 6 rigs to growth with 7 8 rigs Net Operated Production and Firm Gathering 3.00 (bcf/d) 7th rig added by YE22 Contracting gathering and treating capacity expansions…
Haynesville: Profitable Growth, Advantaged Markets Asset Overview 2Q22 3Q22E FY22E Haynesville Sales Points Net Production (bcf/d) 1.64 1.55 1.65 1.6 1.7 HISTORICAL DEDUCT CURRENT DEDUCT HAYNESVILLE TOTAL Wells Drilled 17 15 20 65…
Eagle Ford: Superior Margins, Sustainable Free Cash Flow 14 years of drilling using 2 3 rigs Brazos Valley South Texas 2022E BU EBITDAX 1.7B 1.9B (1,2) 0 10 20 40 Miles Emerging Austin Chalk potential, 10 wells in 2022 program…
Delivering ESG Excellence Achieved Grade A MiQ and EO100TM CHK GHG Emissions Intensity CHK Methane Intensity certification for legacy Haynesville metric tons CO2e/gross mboe produced volume methane emissions/volume gross natural gas…
Most Compelling Natural Gas Opportunity Superior Capital Returns Unwavering commitment to returning cash flow to shareholders Deep, Attractive Inventory Capital efficient assets that sustainably generate returns Premier Balance…
Appendix
Non-GAAP Financial Measures This document includes non-GAAP financial measures. Such non-GAAP measures should not be considered as an alternative to, or more meaningful than, GAAP measures. The Companys management believes that these…
Glossary BE: Breakeven the minimum price at which GP&T: Gathering, Processing and Transport PDP: Proved Developed Producing Reserve cumulative cash flows are zero expense classification for a producing well BU: Business Unit IP90:…
Hedging Program Reduces Risk, Protects Returns As of 7/29/2022 Gas % Hedged 71% 57% Oil % Hedged DOWNSIDE PROTECTION LEVELS RMDR 2022(1) 2023 Gas, /mcf 2.91 3.43 3.14 4.53 Oil, /bbl 45.37 64.54 75.09 FY 2022 NATURAL GAS…
Hedged Basis Protection As of 7/29/2022 19% of Marcellus and 46% of Haynesville basis hedged for the remainder of 2022 Since 6/22/2022, CHK has added basis protection for: 13.3 bcf of 3Q22 4Q22 gas at an average differential to NYMEX…
Pro Forma Maturity Profile Net debt-to-2022E EBITDAX ratio(1) 0.6x Preserving balance sheet strength 975 6.5%(4) 1,450 4.5% 5.5% 775(2) RBL Capacity 4.5% 500 Pro Forma 221(3) 2022 2023 2024 2025 2026 2027 2028…
Managements Outlook as of August 2, 2022 2022 Projections Total production: Oil mbbls per day 51 56 NGL mbbls per day 15 18 Natural gas mmcf per day 3,600 3,680 Total daily rate mmcfe per day 4,020 4,140 Estimated basis to NYMEX…
Reconciliation of Net Income (Loss) to Adjusted EBITDAX (unaudited) Successor Three Months Ended Three Months Ended June 30, 2022 June 30, 2021 ( in millions) Net income (loss) (GAAP) 1,237 (439) Adjustments: Interest expense…
Reconciliations of Adjusted Free Cash Flow and Net Debt ADJUSTED FREE CASH FLOW Successor Three Months Three Months Ended Ended June 30, 2022 June 30, 2021 ( in millions) Net cash provided by operating activities (GAAP) 909…
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