April 2010 Investor Presentation CHK Overview The second largest producer of U.S. natural gas (post XOM/XTO acquisition) 4Q09 natural gas production of 2.440 bcf/d Most active driller in U.S. CHK is responsible for 1 of 7 gas wells…
April 2010 Investor Presentation CHK Overview, Continued High quality U.S. shale asset base within the Big 6 1 in Marcellus Shale; 1,570,000 net acres 1 in Haynesville Shale; 535,000 net acres 2 iin F Fayetteville ill Sh Shale;…
April 2010 Investor Presentation CHKs Value Creation Process Through enhanced drilling technology, industry leading opportunity capture and unique value adding JV sales of minority positions, CHK has increased its total resource base…
April 2010 Investor Presentation CHKs 3 Year Growth Profile Last 3 years Next 3 Years Next 3 Years 2006 2009 % Change 2012E % Change Production oduct o (bcfe/d) (bc e/d) 1.6 6 2.5 5 56% 56 3.5 3 5-3 3.75 5 40% 0 - 50 50%…
April 2010 Investor Presentation What Are Unproved Resources and Unproved Acreage Worth Today Unrisked Risked Time Unrisked Unrisked Risked Risked Time Adjusted Unproved Unproved Unproved Unproved Adjusted Risked Risked Estimated…
April 2010 Investor Presentation CHK = Exceptional Value (1) Pro forma 12/31/2009 (2) NAV various NYMEX gas prices Average NYMEX Natural Gas Prices ( in millions, except per share data) 5.00 6.00 7.00 8.00 9.00 Proved developed…
Powerful Assets Create Powerful Value
April 2010 Investor Presentation CHK Operating Areas CHKs operations are: natural gas focused; well-diversified; all onshore U.S.; not in the GOM (high and dry); not in the Rockies (fewer political/environmental hassles and…
April 2010 Investor Presentation Americas 1 Gas Resource Base CHK is exceptionally well positioned for long- Net Acreage Drillsites term profitable growth 13.7 million acres 35,750 net drillsites Largest combined inventories of…
April 2010 Investor Presentation CHKs Drilling Inventory(1) Total Proved Reserves Est. Risked Est. Avg. Total Risked and Risked Unrisked Current Feb-09 CHK CHK Drilling Net Reserves Proved Unproved Unproved Unproved Daily Operated…
April 2010 Investor Presentation Marcellus Shale Overview The Marcellus Shale play is likely to become one of the two largest gas fields in the U.S. (Haynesville the other) Prospective Area = 15 Million Acres CHK is the second…
April 2010 Investor Presentation Haynesville Shale Overview CHK discovered in 2007; the Haynesville Shale is Prospective Area = 3.0 Million Acres likely to become one of the two largest natural gas fields in the U.S. (Marcellus the…
April 2010 Investor Presentation CHK 1 in the Haynesville/Bossier Core CHK discovered the Haynesville and from TEXAS LOUISIANA the beginning targeted the Core In the past three years, CHK has built the dominant leasehold position in…
April 2010 Investor Presentation Bossier Shale Overview CHK is the largest leasehold owner in the play Bossier Shale Prospective Area = 1.0 Million Acres CHK currently owns 180,000 net acres of leasehold ease o d prospective p…
April 2010 Investor Presentation Fayetteville Shale Overview CHK is the second-largest producer in the Prospective Area = 1.7 Million Acres Fayetteville Shale and the second-largest leasehold owner in the Core area of the play…
April 2010 Investor Presentation Barnett Shale Overview The Barnett Shale is currently the largest natural gas Prospective Area = 1.5 Million Acres producing field in the U.S. and is producing 50% of all shale g gas in the U.S.…
April 2010 Investor Presentation Greater Granite Wash Overview OK CHK Op Rigs Texas Panhandle CHK Non-Op Rigs Granite Wash TX Industry Rigs Colony Granite Wash CHK Acreage Reed T8H 70miles Peak Rate: 10.6 mmcfe/d Shirl Ann…
U.S. Natural Gas Market Perspectives
April 2010 Investor Presentation The Industrys Cost Curve Has Shifted Rapidly Very Important to Understand Until five years ago, most E&P companies in the U.S. owned an asset base that was more or less the same as everyone elses not…
April 2010 Investor Presentation What is the Marginal Cost of Supply Natural gas prices not likely to stay 3.00 permanently low because of the great Other Permian success of the Big 6 Shale plays Pre-drilling carry targetted F&D…
April 2010 Investor Presentation Key Natural Gas Market Factors U.S. natural gas prices were weak in 2009 (average NYMEX price of 3.99 per mcf), 2010 prices are off to a tough start, although gradually improving supply/demand…
April 2010 Investor Presentation Top 20 U.S. Natural Gas Producers Daily U.S. Natural Gas 2009 Reported Proved U.S. U.S. U.S. U.S. Gas Rigs Production (a,b) 4Q'09 4Q'09 U.S. Net Natural Gas Gas Rigs Gas Rigs % Drilling vs. 3Q'09 vs.…
April 2010 Investor Presentation 2010 Financial Projections at Various Natural Gas Prices As of 2/17/10 Outlook ( in millions; oil at 80.00 NYMEX) 5.00 6.00 7.00 8.00 9.00 (1) O/G revenue (unhedged) 985 bcfe 4,720 5,290 5,910 6,500…
April 2010 Investor Presentation 2011 Financial Projections at Various Natural Gas Prices As of 2/17/10 Outlook ( in millions; oil at 80.00 NYMEX) 5.00 6.00 7.00 8.00 9.00 (1) O/G revenue (unhedged) 1,140 bcfe 5,370 6,190 7,020…
April 2010 Investor Presentation (1) Cash Resource Plan 10 - 11 2010E 2011E Total (1)(2) Operating Cash Flow 4,900 - 5,000 5,300 - 6,000 10,200 - 11,000 Net leasehold and producing properties transactions 1,300 - 1,700 1,000 - 1,300…
April 2010 Investor Presentation Senior Note Maturity Schedule(1) 4,000 3,600 Total Senior Notes: 11.2 billion Average Rate: 6.2% 3,338(2) 3 200 3,200 A Average M Maturity: i 6.75 6 75 years 2,800 2,476(2) 2,400 2,163(2)…
April 2010 Investor Presentation CHKs Natural Gas and Oil Hedge Positions for 2010-2011(1)(2) Volume Hedged NYMEX Volume Hedged NYMEX Avg. Nymex Avg. (3) (4) Natural Gas Swaps (bcf) % Hedged Avg. Price Natural Gas Collars (bcf) %…
April 2010 Investor Presentation CHK Hedging: A Value Added Skill Quarterly Realized Gains and Losses 1Q'01 - 4Q'09 800 600 CHKs hedging program has generated 4.4 billion in realized cash gains 400 since inception in 2001…
April 2010 Investor Presentation CHK: Positioned for Success in 2010 and Beyond Great Assets 1 combined leasehold position in the Big 6 shale plays 14.6 tcfe of proved resources at 12/09 (20-22 tcfe by 2012), 65 tcfe risked unproved…
April 2010 Investor Presentation Corporate Information Chesapeake Headquarters Contacts: 6100 N. Western Avenue Jeffrey L. Mobley, CFA Oklahoma City, OK 73118 Senior Vice President Web site: www.chk.com Investor Relations and…
April 2010 Investor Presentation Reconciliation of Adjusted EBITDA ( in millions) (unaudited) (a) Reflects the adoption and retrospective application of accounting guidance for debt with conversion and other options. (b) Adjusted…
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