6 5 - RR DONNELLEY FINANCIAL - External Home Login

Information About Us
Our principal executive offices are located at 6100 North Western Avenue, Oklahoma City, Oklahoma
73118 and our main telephone number at that location is (405) 848-8000. We make available free of charge on
our website at www.chk.com our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports
on Form 8-K, and amendments to those reports as soon as reasonably practicable after we electronically file
such material with, or furnish it to, the Securities and Exchange Commission. From time to time, we also post
announcements, updates, events, investor information and presentations on our website in addition to copies
of all recent press releases. References to “us”, “we” and “our” in this report refer to Chesapeake Energy
Corporation together with its subsidiaries.
Recent Developments
25/25 Plan
In January 2011, we updated our strategic and financial plan originally announced in May 2010 with our
“25/25 Plan”. The 25/25 Plan details our intention to reduce our outstanding long-term indebtedness of $13.4
billion by 25% by the end of 2012 and to reduce our planned two-year net production growth rate to 25% from
the previous target range of 30% to 40%. The reduction in our projected production growth rate will be
achieved by various asset monetizations that we plan to execute during the next two years, including our
Fayetteville Shale and Niobrara Shale divestitures described below.
Senior Notes Offering
On February 11, 2011, we issued $1.0 billion of 6.125% Senior Notes due 2021. We used the net
proceeds of $977 million from the offering to repay indebtedness outstanding under our revolving bank credit
facility. The offering is a part of our 2011 liability management program, which includes extending the maturity
profile of our outstanding indebtedness while also retiring approximately $2.0 to $3.0 billion of our shorter-dated
senior notes as part of our 25/25 Plan.
Fayetteville Shale, Frac Tech Holdings, LLC and Chaparral Energy, Inc. Asset Monetizations
On February 21, 2011, we entered into an agreement with BHP Billiton Petroleum, a wholly owned
subsidiary of BHP Billiton Limited (NYSE: BHP; ASX: BHP), to sell all of our Fayetteville Shale assets,
including approximately 487,000 net acres of leasehold and producing natural gas properties and midstream
assets with approximately 420 miles of pipeline, for $4.75 billion in cash before certain deductions and
standard closing adjustments. In the Fayetteville Shale, we are the second-largest producer of natural gas with
current net production of approximately 415 mmcfe per day. Estimated proved reserves attributable to the
Fayetteville Shale as of December 31, 2010 were 2.4 tcfe, or approximately 14% of our total proved reserves.
As part of the transaction, we have agreed to provide essential services for up to one year for BHP Billiton for
an agreed-upon fee. Closing of the transaction is subject to customary conditions, including filings under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 and with the Committee on Foreign Investment in the
United States. Closing is expected to occur in the first half of 2011. In addition, we have commenced efforts to
monetize our equity investments in Frac Tech Holdings, LLC and Chaparral Energy, Inc. We own a 25.8%
equity interest in Frac Tech and a 20.0% equity interest in Chaparral. These sales are subject to changes in
market conditions and other factors, and there can be no assurance that we will complete either or both of
these transactions on a timely basis or at all.
Niobrara Industry Participation Agreement
On February 16, 2011, we entered into an industry participation agreement with a wholly owned U.S.
subsidiary of CNOOC Limited (CNOOC) to develop our Niobrara Shale play in the DJ and Powder River Basins
in northeast Colorado and southeast Wyoming. Under the terms of the industry participation agreement,
CNOOC acquired a 33.3% undivided interest in approximately 800,000 net acres of our leasehold. We
received $570 million in cash at closing, and CNOOC has agreed to fund 66.7% of our share of drilling and
completion costs until an additional $697 million has been paid, which we expect to occur by year-end 2014. In
addition, CNOOC has the right to a 33.3% participation in any additional leasehold we acquire in the area at
cost plus a fee.
3