Chesapeake Energy Corp.

Chesapeake Energy Corporation is the most active driller and third-largest producer of natural gas in the U.S. The Oklahoma City-based company focuses on exploratory and developmental drilling onshore in the U.S. With interests in 37,000 producing wells and an estimated 11 trillion cubic feet of natural gas equivalent (tcfe) proved reserves, Chesapeake is noted for technological innovation, financial achievement and its commitment to natural gas as America's best solution to the need for more energy and a cleaner environment.

Strategic Vision

Chesapeake was founded with a specific vision: to identify and exploit nontraditional natural gas plays through the implementation of cutting-edge exploration and drilling technology.

Chesapeake has developed the expertise, infrastructure and support systems required to execute a drilling program of a size and technological sophistication unprecedented in the E&P industry. Using approximately 150 operated rigs and 100 non-operated rigs, Chesapeake is involved in approximately 15% of all US drilling activity. Chesapeake's 6,000 employees include 1,200 geoscientists, landmen and engineers. Technological investments have resulted in continually improved horizontally drilled wells and fracture simulation processes that have enabled the company to successfully develop previously uneconomical shale and tight gas sand reserves.

Chesapeake has built the nation's largest combined inventories of leasehold and 3-D seismic data with approximately 12.5 million net acres of leasehold and 18.5 million acres of 3-D seismic data. On this leasehold, the company has approximately 28,000 net drilling locations, representing an approximate 10-year inventory of drilling projects, on which it believes it can develop an estimated 23 tcfe of unproved reserves. The company's diverse leasehold inventory includes traditional conventional plays, unconventional gas resource plays, including the Fort Worth Barnett Shale play where it is now the third-largest producer, emerging gas resource plays and the Appalachian Basin.

Financial Success

The company's financial success is the direct result of an active drilling and acquisition strategy, a low-cost structure, an effective hedging program and an entrepreneurial management team.

From 2002 through 2006, Chesapeake's fully diluted earnings per common share grew at a 125% annualized rate, to $4.35 per share. In the first three quarters of 2007, Chesapeake achieved fully diluted earnings per common share of $2.23, while the company's hedging program resulted in realized gains of $2.2 billion during 2006 and the first three quarters of 2007. As of October 2007, the company had an enterprise value of approximately $31 billion.

Operational Excellence

The third quarter of 2007 was Chesapeake's 25th consecutive quarter of production growth. Over these 25 quarters, production increased 417% to approximately 2.0 bcfe per day, 91% of which is natural gas.

In the third quarter of 2007, as the most active driller of new wells in the U.S., Chesapeake recorded a 99% drilling success rate on company-operated wells and a 97% success rate on non-operated wells. In addition, the company increased its production 27% over the 2006 third quarter and 8% over the 2007 second quarter. Similar growth over the next few years will likely make Chesapeake the largest producer of natural gas in the U.S. and should create significant value for its shareholders.

Environmental Commitment

Chesapeake takes pride in the abundant, affordable, reliable, clean-burning natural gas that it produces. With more rigs running than any other company in the nation, Chesapeake acknowledges and embraces the great responsibility that accompanies its success. Each well Chesapeake drills and operates complies with a host of regulations established by federal, state and local regulatory agencies. The company drills on locations that range from densely populated cities to rural areas and at every wellsite it adapts its operations to protect and preserve the environmental integrity of the area.

Aubrey K. McClendon Chairman of the Board CEO and Director, Chesapeake Energy Corporation