Skip to main content Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp Investor Presentation | Shale Experts
Loading...
Pm

Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp

Chesapeake Energy Corp · Jun 25, 2014 · 23 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. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 1
    Global Hunter Securities 100 Energy Conference Chris Doyle, SVP Northern Division Operations Chicago, IL June 25, 2014
  2. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 2
    REALIZING THE VALUE IN CHESAPEAKE 3 I Global Hunter Securities 100 Energy Conference 6/25/2014
  3. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 3
    TRANSFORMING OUR BUSINESS Organizational structure Portfolio management and capital allocation process Decision rights Corporate budget process and plan Focus on capital efficiency Performance measurement and Cash cost…
  4. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 4
    APPLYING OUR BUSINESS STRATEGIES Balance capital expenditures with Develop world-class inventory cash flow from operations Target top-quartile operating and Divest noncore assets and financial metrics noncore affiliates Pursue…
  5. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 5
    REALIZING IMPACT OF STRATEGIC SHIFT 2012 2013 1Q14 15% 54% 30% 46% 70% 85% HBP Focus Pad Drilling Focus Value and Right-sized Maximization Drilling Program Focus Positive PV-10 Negative PV-10 Data provided above…
  6. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 6
    FOUNDATIONAL ELEMENTS FOR VALUE CREATION CHK 7 I Global Hunter Securities 100 Energy Conference 6/25/2014
  7. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 7
    CAPITAL EFFICIENCY IN N. MARCELLUS Value Creation, M 1 million 2014 savings reinvested into completions optimization 55% ROR on reinvested capital 16,000 Gross Daily Production Rates 14,000 12,000 10,000 Gas…
  8. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 8
    CAPITAL EFFICIENCY IN UTICA Spud to Spud Cycle Times (days) Avg. Well Cost ( in mm) 1.4 mm in reinvested capital E 2.3 miles 80% Record for longest useable lateral drilled ROR on incremental 1.4 mm by CHK (12,327 in…
  9. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 9
    MOST EFFICIENT OPERATOR IN UTICA Drill Days (Spud to TD) Days Avg. Capex per Lateral Ft. 11.8 mm/well M / Lateral Ft 6.7 mm/well 7.4 mm/well Rate of Return % CHK Operated Non-Operated CHK Leasehold ROR % Oil…
  10. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 10
    FOUNDATIONAL ELEMENTS FOR VALUE CREATION CHK 11 I Global Hunter Securities 100 Energy Conference 6/25/2014
  11. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 11
    CASH FLOW GROWTH IN UTICA 400% 300% 30 - 60% YOY Production Growth YOY Production Growth YOY Production Growth (2012 to 2013) (2013 to 2014E) (2014E to 2015E) 120 Key 2014 Milestones NGL 100 1Q14 Avg. Production 50,000 boe/d…
  12. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 12
    CASH FLOW GROWTH IN PRB Gross Operated Powder River Basin Recoverable Resources Fort Union 49% 51% Lance Niobrara Upper Cretaceous / Frontier Fox Hills Teckla Teapot Parkman 1.3 billion boe Gross recoverable…
  13. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 13
    FOUNDATIONAL ELEMENTS FOR VALUE CREATION CHK 14 I Global Hunter Securities 100 Energy Conference 6/25/2014
  14. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 14
    CORE EXPANSION IN N. MARCELLUS Capital Efficiency Improved EURs Pad Drilling Reservoir Characterization Peake Drilling Targeting and steering 24/7 Ops Center Optimized Completions Supply Chain 15 I Global Hunter Securities 100…
  15. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 15
    CORE EXPANSION IN UTICA: UNLOCKING THE OIL WINDOW 500 barrels oil Recent oil IPs (old completion design) Oil Window Test Area 1,000 boe/d Recent full-stream IPs (old completion design) Leveraging proprietary Reservoir…
  16. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 16
    CORE EXPANSION IN UTICA: DRY GAS OPPORTUNITY 6.7 Mmcf/d 6.1 Mmcf/d 5.1 Mmcf/d 7.1 Mmcf/d 330,000 acres 5.1 Q2Mmcf/d 12 Net, dry gas acres in Jefferson County, OH and W. Virginia 5.9 Mmcf/d 5.9 Mmcf/d Q1 12 6.9 Mmcf/d 6.9…
  17. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 17
    FOUNDATIONAL ELEMENTS FOR VALUE CREATION CHK 18 I Global Hunter Securities 100 Energy Conference 6/25/2014
  18. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 18
    REDUCING LEVERAGE (mm) 12/31/12 12/31/14E Total Debt 13,084 11,825 10% VPPs 3,187 1,720 Operating & Finance Leases 1,255 182 Subsidiary Preferred 2,500 1,060 Corporate Preferred 1,531 1,531 Cash (287) (1,200) Total Adjusted…
  19. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 19
    REDUCING COMPLEXITY: COS SPIN CHK Board has approved a 100% spin-off of Seventy Seven Energy Inc. (SSE) Timing: When-issued trading: June 17, 2014 Record date: June 19, 2014 Distribution to CHK shareholders: June 30, 2014…
  20. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 20
    DELIVERING ON 2014 PROMISES Production growth 9 12% Cash flow 5,550 5,750 MM Capital 5,000 5,400 MM (Excluding Cap Interest) Cash costs LOE, G&A and interest expense Leverage Reduce leverage by 20% YE 2014 21 I…
  21. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 21
    DEPLOYING CAPITAL EFFICIENTLY (1) CHK Production Growth and Capex based on midpoint of company Outlook issued on 5/16/2014. Total CHK Capex includes capitalized interest. Peer group in alphabetical order includes: Anadarko, Apache,…
  22. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 22
    FOCUSED ON VALUE DELIVERING GROWTH 1 MILLION BOE/DAY (1) Growth ranges based on midpoint of company Outlook issued on 5/16/2014. 23 I Global Hunter Securities 100 Energy Conference 6/25/2014
  23. Global Hunter Securities 100 Energy Conference – Chesapeake Energy Corp – slide 23
    REALIZING THE VALUE IN CHESAPEAKE 24 I Global Hunter Securities 100 Energy Conference 6/25/2014

From the store

Browse maps, data & reports in the Shale Experts store