2 Chesapeake Energy Oil and Gas Production Process

CANTO N REGIONAL CHAMBER OF COMMERCE OIL & GAS BUSINESS DEVELOPMENT SEMINAR III MARK A. MATUSICK MANAGER – CORPORATE DEVELOPMENT PRESENTED: OCTOBER 9, 2012

1

THE PRODUCTION PROCESS WITH EXAMPLES OF ECONOMIC IMPACT (UTICA) DELIVERING RESOURCES FROM THE GROUND TO MARKET

2

CHESAPEAKE ENERGY NYSE: CHK

Low-risk, U.S. onshore asset base; not exposed to economic, geopolitical or technological risks internationally or in the Gulf of Mexico

OCTOBER 2012 INVESTOR PRESENTATION

UTICA SHALE OPERATIONS • CHK is largest leasehold owner in the play with > 1.0 mm net acres • Currently operating 12 rigs in the play, plan to exit 2012 with 15 operated rigs • CHK has drilled a total of 87 wells in the play, of which 28 wells with production information in the focus area have average peak rates of ~1,000 boe/d * Additional wells waiting on pipeline connection or in various stages of completion.

Most recent copy of Investor Presentation can be at our INVESTORS section of our website at CHK.com

4

ECONOMIC IMPACT (UTICA) A REVIEW OF KEY DEFINITIONS Key Industry Studies The Economic and Employment Contributions of Shale Gas in State Economies

JUNE, 2012

An Analysis of the Economic Potential for Shale Formations in Ohio

FEB, 2012

Ohio's Natural Gas & Crude Oil E&P Industry - Economic Impact Study

SEP, 2011

How is it measured 1  Employment (Jobs)

 Labor Income (Employee Wages)

 Value Added (Contribution to G.D.P.)

Categories & Stages 1  Direct (Core Industry)

 Indirect (All other industries)

 Induced (Spending of Employee Wages)

1 – iHS Global Insights – The Economic & Employment Contributions of Shale Gas in the United States

THE PRODUCTION PROCESS DELIVERING RESOURCES FROM THE GROUND TO MARKET

Multiple Stages of Operation Process › Leasing › Site Planning & Preparation › Rig Up & Drilling › Completion › Production › Transportation › Pipeline Site Development & Construction › Compressor Stations & Oil Terminals › Royalty Payments › Reclamation Process details, videos & animations can be found in our Educational Library located under media link at chk.com

THE PRODUCTION PROCESS DELIVERING RESOURCES FROM THE GROUND TO MARKET

4 Key Phases of Production › Site Planning › Drilling › Completion › Production Process details, videos & animations can be found in our Educational Library located under media link at chk.com

THE PRODUCTION PROCESS STAGE 1 - SITE PLANNING

8

THE PRODUCTION PROCESS SITE PLANNING & PREPARATION

EXAMPLES OF ECONOMIC IMPACT

Reference: Marcellus Shale Education & Training Center (MSETC) – Economic Impacts of Marcellus Shale in Pennsylvania: Employment and income in 2009 August 2011

9

THE PRODUCTION PROCESS STAGE 2 - DRILLING

10

EXAMPLES OF ECONOMIC IMPACT

DIRECT “Baker Huges to hire 700 people in Massillon, invest $64 million to serve shale gas industry “- The Plain Dealer INDIRECT (Government) The Ohio Department of Natural Resources says it is hiring 70 more employees to regulate an increase in oil and gas drilling - WOUB News INDIRECT (Restaurant) “The former Saratoga Restaurant is reopening within the next month or so as the Shale Tavern & Grill….. and expect to employ 35 to 40 workers” – Salem News

11

THE PRODUCTION PROCESS STAGE 3 - COMPLETIONS

12

EXAMPLES OF ECONOMIC IMPACT DIRECT STRASBURG, OH- “Several hundred jobs will be created in Tuscarawas County as Schlumberger Limited, a major oil field service provider to oil and gas companies worldwide, locates in Strasburg.” - MUNICIPAL INSIDER INDIRECT (Many Industries) YOUNGSTOWN, Ohio – “Projects involving shale-related businesses accounted for nearly a third of the business retention and expansion projects …104 projects resulting in investments totaling $272.8 million, which produced 1,552 new jobs and retained 1,166 jobs” - Youngstown/Warren Regional Chamber INDUCED – (Banking / Financial Services) “At Huntington Bancshares in Columbus, Ohio, executives give shale drilling in Ohio, Pennsylvania and West Virginia much of the credit for the bank's move to No. 3 among Small Business Administration lenders…The company has added 500 bankers, from loan officers to private bankers” - USA Today 13

THE PROCESS STAGE 4 - PRODUCTION

14

EXAMPLES OF ECONOMIC IMPACT DIRECT “Halliburton Co. plans to bring about 300 jobs over three years to the Zanesville area” - The Columbus Dispatch INDIRECT (Trucking & Transportation) “R&J Trucking is hoping to attract experienced drivers to help them with their increased workload from supplying pad construction for Utica Shale development ….. We have a dispatcher with about 20 drivers on board with us right now for the oil and gas…we need to get another 40-50 drivers right away to bring us up to speed and I don’t this is going to be the limit either. We will probably bring on another 40-50 drivers on top of that.” - Greg Beshero, Vorad Program Manager, R&J Trucking INDUCED (Real Estate) “Real estate agents also are getting calls and seeing potential buyers who work for oil industry companies…. sales team at Cutler has sold several houses to Chesapeake employees and helped others rent houses.” – Canton Repository

15

OPPORTUNITY FOR OHIO WHAT DO THE STUDIES FORECAST

Chart 1 - Kleinhenz and Associates (OOGEEP) - Ohio Economic Impact Study - SEP 2011 Chart 2 - Ohio Shale Coalition - Economic Impact Study for Shale Formations in Ohio - FEB 2012

16

SHALE GAS EMPLOYMENT CONTRIBUTION TO U.S. WORKFORCE

“An Economic Growth Engine”

iHS GLOBAL INSIGHT study “The Economic & Employment Contributions of Shale Gas in the United States, DEC, 2011

17

Questions?

For more information:

Information provided is subject to change based on multiple factors

Š 2012 – Chesapeake Energy, All Rights Reserved.

This presentation is intended for the sole viewing of the specified audience an may not be shared or otherwise released publically (in part or in its entirety) without the express written permission of Chesapeake Energy Corporation.