Chesapeake Energy Corporation Announces Closing of Permian Basin Asset Sales

  Chesapeake Energy Corporation Announces Closing of Permian Basin Asset Sales

Business Wire

OKLAHOMA CITY -- October 22, 2012

Chesapeake Energy Corporation (NYSE:CHK) announced today it has completed the
sale of its previously announced asset packages in the Permian Basin. The
company sold its southern Delaware Basin assets in the Permian Basin to SWEPI
LP, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.B); its northern Delaware
Basin portion of the Permian Basin to Chevron U.S.A. Inc., a subsidiary of
Chevron Corporation (NYSE:CVX); and its producing assets in the Midland Basin
portion of the Permian Basin to affiliates of Houston-based EnerVest, Ltd. The
Permian Basin assets sold produced approximately 21,000 barrels of liquids and
90 million cubic feet of natural gas per day during the 2012 second quarter,
or approximately 5.7% of Chesapeake’s production during the quarter.

Total combined net proceeds from the three transactions, inclusive of
preferential rights exercised by other parties, are approximately $3.3
billion, of which Chesapeake received approximately $2.8 billion in cash at
closing. Payment of the remaining proceeds will be subject to certain title,
environmental and other standard contingencies. With the net proceeds from the
Permian transactions along with various other asset sale proceeds, the company
will reduce the total outstanding balance on its existing term loans from $4.0
billion to approximately $1.2 billion by the end of October 2012. The company
plans to fully repay the term loans by year-end 2012.

Jefferies & Company, Inc. and Goldman, Sachs & Co. served as financial
advisors to Chesapeake regarding the Permian Basin asset sales.

This news release includes “forward-looking statements” that give our current
expectations or forecasts of future events, including the planned use of asset
sale proceeds. Although we believe the expectations and forecasts reflected in
our forward-looking statements are reasonable, we can give no assurance they
will prove to be correct. They can be affected by inaccurate assumptions or by
known or unknown risks and uncertainties, and actual results may differ from
the expectations expressed. We caution you not to place undue reliance on our
forward-looking statements, which speak only as of the date of this news
release, and we undertake no obligation to update this information.

Chesapeake Energy Corporation (NYSE:CHK) is the second-largest producer of
natural gas, a Top 15 producer of oil and natural gas liquids and the most
active driller of new wells in the U.S. Headquartered in Oklahoma City, the
company's operations are focused on discovering and developing unconventional
natural gas and oil fields onshore in the U.S. Chesapeake owns leading
positions in the Eagle Ford, Utica, Granite Wash, Cleveland, Tonkawa,
Mississippi Lime and Niobrara unconventional liquids plays and in the
Marcellus, Haynesville/Bossier and Barnett unconventional natural gas shale
plays. The company also owns substantial marketing and oilfield services
businesses through its subsidiaries Chesapeake Energy Marketing, Inc. and
Chesapeake Oilfield Services, L.L.C. Further information is available at
www.chk.com where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.

Contact:

Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
John J. Kilgallon, 405-935-4441
john.kilgallon@chk.com
or
Media Contacts:
Michael Kehs, 405-935-2560
michael.kehs@chk.com
or
Jim Gipson, 405-935-1310
jim.gipson@chk.com
 
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