Chesapeake Energy Corporation Announces Arrangement of $2.0 Billion Unsecured Term Loan Facility

  Chesapeake Energy Corporation Announces Arrangement of $2.0 Billion
  Unsecured Term Loan Facility

Business Wire

OKLAHOMA CITY -- November 01, 2012

Chesapeake Energy Corporation (NYSE:CHK) announced today that it has engaged
Bank of America, N.A., Goldman Sachs Bank USA and Jefferies Finance LLC to
assist with the arrangement of an unsecured five-year term loan facility in an
aggregate principal amount of $2.0 billion. Chesapeake intends to use the net
proceeds of the new term loan facility to repay the remaining outstanding
borrowings under the company’s existing term loan facility arranged in May
2012 and to repay outstanding borrowings under the company’s corporate
revolving credit facility. This will enhance the company’s liquidity and
financial flexibility as it continues to execute its previously announced
asset sales strategy and will allow the future repayment of higher cost debt.

Archie W. Dunham, Chesapeake’s Non-Executive Chairman of the Board, stated:
“The board and management believe current corporate loan market conditions
offer attractive refinancing opportunities on favorable terms. By using the
proceeds of this loan to repay more costly debt and provide excess liquidity,
we will enhance our financial flexibility and ensure our ability to complete
our planned asset sales efficiently. We continue to believe that Chesapeake’s
portfolio of assets and dedicated employees are second to none, and we have
confidence in the company’s ability to achieve its stated financial and
operational goals. The board and management remain committed to reducing debt
levels to $9.5 billion or below as we execute on a more focused drilling
program on our existing assets.”

Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, commented: “We are
pleased with the progress we’ve made toward achieving our long-term debt goals
since the beginning of 2011 and look forward to the completion of those goals,
driven by the success of our asset sale program, which remains on track. We
are proud of the production growth we have achieved, particularly the growth
of our oil and natural gas liquids production over this period. We also look
forward to the completion of our 2012-2013 asset sales and more focused
drilling activity that will lead over time to a balance between drilling
capital expenditures and operating cash flow as we transition into our asset
harvest strategy from our previous strategy of new play identification and

Amounts borrowed under the new term loan facility will be unsecured and will
be unconditionally guaranteed on a joint and several basis by Chesapeake’s
direct and indirect wholly owned domestic subsidiaries that are subsidiary
guarantors under the company’s existing senior notes indentures. The new term
loan facility will permit Chesapeake to repay other unsecured indebtedness,
including amounts outstanding under the existing term loan facility,
Chesapeake’s 6.775% Senior Notes due 2019, Chesapeake’s 7.625% Senior Notes
due 2013 and up to $1.2 billion of other senior unsecured indebtedness.
Additionally, the new term loan facility will permit Chesapeake to refinance
its existing senior unsecured indebtedness with longer-dated senior unsecured

Chesapeake's ability to establish the new facility and borrow thereunder will
be subject to the receipt of commitments from lenders to provide the facility,
the negotiation and execution of definitive loan documents and other customary

This news release includes "forward-looking statements" that give Chesapeake's
current expectations. Although we believe the expectations reflected in our
forward-looking statements are reasonable, we can give no assurance they will
prove to have been correct. They can be affected by inaccurate assumptions or
by known or unknown risks and uncertainties, and actual results may differ
from the expectation expressed. The final terms of the new loan facility, if
it is established, and the use of proceeds may differ from the expectations
announced. We may be unable to complete our planned asset sales as scheduled
or at all, and they may not generate the proceeds we are anticipating. Our
ability to consummate asset sales is dependent upon market conditions and
other factors beyond our control, and our plans to reduce indebtedness are in
large part dependent upon asset sales we expect to make. We may not be
successful in achieving a balance between drilling capital expenditures and
operating cash flow in the anticipated time frame.. 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

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 COS
Holdings, L.L.C. Further information is available at where
Chesapeake routinely posts announcements, updates, events, investor
information, presentations and news releases.


Chesapeake Contacts:
Jeffrey L. Mobley, CFA, 405-767-4763
John J. Kilgallon, 405-935-4441
Media Contacts:
Michael Kehs, 405-935-2560
Jim Gipson, 405-935-1310
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