Chesapeake Energy Corporation Announces CEO Succession Plan

  Chesapeake Energy Corporation Announces CEO Succession Plan

       Aubrey K. McClendon to Retire from the Company on April 1, 2013

Board Announces that its Extensive Review of Alleged Conflicts of Interest and
Other Matters Involving McClendon Has to Date Found No Improper Conduct, Final
                    Report to be Completed in Mid-February

Business Wire

OKLAHOMA CITY -- January 29, 2013

Chesapeake Energy Corporation (NYSE:CHK) today announced that its Co-founder,
Chief Executive Officer and President, Aubrey K. McClendon, has agreed to
retire from the company on April 1, 2013 and will continue to serve as Chief
Executive Officer until his successor is appointed. Mr. McClendon, 53, has
served as Chesapeake’s Chief Executive Officer since the inception of the
company in 1989 and served as Chairman of the Board from its founding until
2012.

Archie W. Dunham, Chairman of the Board, stated: “Over the past 24 years,
Aubrey McClendon has created one of the most valuable and innovative companies
in the energy industry. Under Aubrey’s strong leadership, Chesapeake has built
an unmatched portfolio of natural gas and oil assets in creating one of the
world’s leading energy companies. He has been a pioneer in the development of
unconventional resources, and he has also been a leader in the effort to make
the United States energy independent. However, as the company moves towards
more fully developing the value of its outstanding assets, Chesapeake is at an
important transition in its history and Aubrey and the Board of Directors have
agreed that the time has come for the company to select a new leader. The
Board will be working collaboratively with Aubrey to make a smooth transition
to Chesapeake’s next Chief Executive Officer.”

Mr. Dunham continued: “Going forward, the company will strive to continue as a
low cost producer of oil and gas while further enhancing and strengthening its
balance sheet. Capital allocation and operating decisions will be made with
the goal of prudently growing the company’s intrinsic value per share for the
long-term benefit of its shareholders. By forging ahead with a new Chief
Executive Officer, the company’s strong management team and talented employees
will continue to develop the industry’s best assets to create substantial
value for shareholders and themselves in the years ahead.”

Aubrey K. McClendon, Chesapeake’s Chief Executive Officer, said: “Over the
past 24 years, I have had the privilege of developing Chesapeake into one of
the world’s premier energy companies. It has been an honor to work with my
outstanding management team and the company’s 12,000 very talented and
dedicated employees. I am extremely proud of what we have built over the last
quarter of a century, and I am confident that Chesapeake is in a great
position to continue to grow and achieve great success in the future as it
realizes the full value of its outstanding assets. While I have certain
philosophical differences with the new Board, I look forward to working
collaboratively with the company and the Board to provide a smooth transition
to new leadership for the company.”

The Board expects to release the results of its previously announced review of
the financing arrangements, and other matters, between Mr. McClendon (and the
entities through which he participates in the Founder Well Participation
Program) and any third party that has had or may have a relationship with the
company in any capacity, in its earnings announcement scheduled for release
before market open on February 21, 2013. The Board’s extensive review to date
has not revealed improper conduct by Mr. McClendon. The Board and Mr.
McClendon’s decision to commence a search for a new leader is not related to
the Board’s pending review of his financing arrangements and other matters.

The Board has retained Heidrick & Struggles to assist the Board in its search
of Mr. McClendon’s successor. The Board also intends to consult with Mr.
McClendon in connection with this search. The search process will include a
full review of internal and external candidates.

During this interim period, Mr. McClendon will work closely with Steven C.
Dixon, Chief Operating Officer, and Domenic J. Dell’Osso, Jr., Chief Financial
Officer, to transition certain day-to-day management responsibilities in
advance of the completion of the search process for the new Chief Executive
Officer. The company and the Board are committed to its current drilling
program with respect to its existing $6.0 billion drilling and completion
budget for 2013, its ongoing asset sales program and intention to reduce the
company’s long-term debt.

Mr. McClendon will resign from the Board of Directors at the time his
successor is appointed and will receive his full compensation and other
benefits to which he is entitled in accordance with the terms of his
employment agreement. Mr. McClendon will continue to be an important partner
with the company given his stock ownership as well as his interests in certain
of the company’s wells in connection with the Founder Well Participation
Program, which will terminate on June 30, 2014.

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 Operating, L.L.C. Further information is available at
www.chk.com where Chesapeake routinely posts announcements, updates, events,
investor information, presentations and news releases.

This news release includes "forward-looking statements" that give Chesapeake's
current expectations or forecasts of future events. Although we believe the
expectations and forecasts 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. 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.

Contact:

Chesapeake Energy Corporation
Investor Contacts:
Jeffrey L. Mobley, CFA, 405-767-4763
jeff.mobley@chk.com
or
Gary T. Clark, CFA, 405-935-6741
gary.clark@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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