Chesapeake Energy Corporation Delivers Notice to Depositary to Redeem 6.775% Senior Notes Due 2019 at Par

  Chesapeake Energy Corporation Delivers Notice to Depositary to Redeem 6.775%
  Senior Notes Due 2019 at Par

Business Wire

OKLAHOMA CITY -- March 15, 2013

Chesapeake Energy Corporation (NYSE:CHK) delivered notice today to the
Depositary to redeem the company’s 6.775% Senior Notes due 2019 (the “Notes”)
at par. In addition, Chesapeake is continuing to pursue its lawsuit requesting
the United States District Court for the Southern District of New York confirm
that the notice to redeem the Notes the company issued today will be timely
and effective to redeem the Notes at par, with payment to be made within 60
days after such notice, pursuant to the Special Early redemption provision of
the Notes.

On Thursday afternoon the Court denied Chesapeake’s request for a preliminary
injunction concerning The Bank of New York Mellon Trust Company’s obligation
to accept the company’s notice of Special Early redemption at par. Although
Chesapeake did not receive the preliminary order that it had requested from
the Court, it did receive what the company views as comparable relief. In
particular, the Court stated multiple times that it is “overwhelmingly” likely
that the company's notice to redeem at par will not be determined by the Court
to be a notice to redeem under the “make-whole” provision of the indenture,
even if the notice to redeem at par is ultimately deemed untimely. The Court
also stated that “it is overwhelmingly likely that an untimely notice of
Special Early redemption would be held null and void, and not as requiring
redemption under the entirely different Make-Whole Price. Lest the point be
unclear, I will add this: it would be reckless for any party or entity to
condition its conduct or order its legal or business affairs on the assumption
that the Court would rule otherwise.” Although these statements were
preliminary, Chesapeake believes, based on these statements, that a notice to
redeem at par, if it is ultimately found to be untimely, would be null and
void, and the Notes would remain outstanding. Accordingly, the company has
proceeded with the issuance of the notice of a Special Early redemption at

The notice provides, as required in the governing indenture, that payment will
be made on May 13, 2013, pursuant to the Special Early redemption provision of
the Notes, subject to a favorable ruling by the Court that such notice is
timely and effective. Chesapeake desires to redeem the Notes as part of a
broader refinancing of its outstanding debt obligations.

While the company is disappointed that the Court preliminarily observed that
the language of the supplemental indenture was ambiguous with respect to the
deadline for notice of the Special Early redemption and that the Court found
preliminarily that the trustee’s and the noteholders’ argument on the deadline
is “slightly better,” the company believes that this view was based solely on
the limited information presented to the Court so far in the accelerated
litigation process that began last Friday. The company believes that it will
prevail on this issue when the expedited litigation process has been

Domenic J. Dell’Osso Jr., Chesapeake’s Chief Financial Officer, commented, “As
the litigation proceeds, the company intends to present to the Court
additional facts which Chesapeake believes demonstrate the company’s and the
underwriters’ joint and clear intent that the company would have until March
15 to issue any notice of Special Early redemption. We appreciate that the
Court has indicated that it will attempt to issue its ruling before the May
13, 2013, redemption date. We look forward to making our case within the next
two months for the Court to issue a declaratory judgment that the company’s
March 15, 2013, notice is timely and effective under the Special Early
redemption provision of the indenture.”

This announcement does not constitute a notice of redemption, an offer to
purchase or a solicitation of an offer to sell any securities.

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 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, including its intention to
engage in a refinancing of certain of its outstanding debt obligations and
developments in litigation, including the possible discovery of evidence not
now known to the Company. 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.


Chesapeake Energy Corporation
Jeffrey L. Mobley, CFA, 405-767-4763
Gary T. Clark, CFA, 405-935-6741
Media Relations:
Michael Kehs, 405-935-2560
Jim Gipson, 405-935-1310
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