Haynesville Update
We want to take this opportunity to update you, the elected officials and stakeholders of the Haynesville and Bossier shale areas, about our operations, activities in the community and how we are continuing to be a responsible community partner.
May 2023
Operational and Financial Update
On May 2, Chesapeake reported its 2023 first quarter financial and operating results. To learn more, see our news release and strategic outlook highlights.
Business Unit Snapshot (4Q’22):
Generated
$241mm
of adjusted free cash flow(1)
Dividend payable
$1.18
per share on 6.6.23
Cash balance
$1.2B
as of 4.30.23
Capex
$544mm
low end for quarted guide
Executed
~$80mm
in buybacks ~1mm shares as of 4.30.23; ~ $830mm remaining under share repurchase program
Production
~4.1bcfe/d
of Eagle Ford asset sales YTD
Closed
>$2.8B
of Eagle Ford asset sales YTD
Upgraded to
BB+
with Positive Outlook by Fitch Ratings
(1) A non-GAAP measure as defined on our website.
Haynesville Operations:
- Currently operating six drilling rigs in northwest Louisiana. We dropped one rig in the first quarter and expect to drop one in the third quarter.
- Currently have two frac crews operating and expect to release one crew in the second quarter.
- Preparing for further adjustments based on market conditions.
Answering the Call for Affordable, Reliable, Lower Carbon Energy
Today more than ever, we need to move from a world of energy shortage to one of energy surplus. This will provide us with opportunity — to decarbonize, to transition, to invest — all while supporting basic human needs and lessening our environmental footprint. Some believe that energy can only be affordable and reliable or lower carbon, but not both. At Chesapeake, we fundamentally reject this viewpoint, and more importantly, we are proving it’s possible every day.
The United States, and Louisiana in particular, is positioned to help solve this global challenge, and Chesapeake is ready to help unleash the unique resources and opportunity the state holds to ensure Louisiana plays a leadership role in delivering the energy the world desperately needs.
We are producing 1.6 billion cubic feet per day of natural gas in the Haynesville — enough to power 22,365 homes a day using natural gas produced by Chesapeake’s Louisiana operations. The fuel we produce is helping power our homes and our businesses and lessen our nation’s dependence on foreign fuel sources. Your constituents are seeing the benefits of Haynesville Shale production every day in the form of lower natural gas costs and increased royalty payments to landowners. Additionally, our employees are playing an active role in your communities by volunteering for numerous organizations.
Welcome Michelle Cavanaugh
We are pleased to welcome Michelle Cavanaugh to our Community Affairs team in our Haynesville operating area.
Michelle will be working with local stakeholders and community leaders and will organize Chesapeake’s community outreach program. She will be your primary contact for the Haynesville.
Michelle previously was the executive director of Finance for Research at LSU Health in Shreveport, where she was a member of the research department leadership team managing an $80 million budget. She also has experience working for Chambers of Commerce in several states, specializing in community outreach, governmental relations and economic development.
Contact
We want you to know we are here to answer your questions. Our teams speak with landowners everday as we prepared for future development.
Neil Lewis
Landman
318.751.2745
neil.lewis@chk.com
Sammy Briscoe
Maintenance & Construction
318.317.0597
sammy.briscoe.@chk.com
Chad Gafford
Health Safety & Environmental
318.540.4112
chad.gafford@chk.com
Michelle Cavanaugh
Community Affairs
703.853.7306
michelle.cavanaugh.com
Monty Mayfield
Land Manager
405.876.4256
monty.mayfield@chk.com
Matt Sheppard
Government & Regulatory Affairs
717.675.0264
matt.sheppard@chk.com
Jonathan Wheelis
Operations Manager
318.408.1325
jonathan.wheelis@chk.com
Ginger Adam Corley
Contract Lobbyst
gingeradam1@gmail.com
In The Community
Chesapeake’s Haynesville team has been busy volunteering as we strive to strengthen the communities in which we operate. Our H.E.L.P. (Help Energize Local Progress) Initiative provides our employees the opportunity to volunteer their time helping countless worthwhile non-profit organizations. Below are just a few of the community projects our team took part in the first quarter of 2023.
Touring the Field
This spring, the Haynesville team invited students from nearby community colleges to tour our field operations, learn more about the oil and gas industry and identify potential career opportunities.
Awarding a Deserving Student
Senior Administrative Assistant Stormey Webster recently presented a Chesapeake Energy Scholarship to Christopher Ezernack, a graduate of Negreet High School in Sabine Parish. Christopher is pursuing an engineering degree from Northwestern State University and plans to embark on a career in oil and gas.
Partnering with First Responders
Firefighters from Caddo Fire District 4 toured a drilling rig in Caddo Parish. The tours gave first responders an opportunity to see an active drill site and create appropriate response plans in the event of an emergency.
ESG Update
Prioritizing Safety
Our commitment to safety remains at the forefront in all that we do to help keep our teams and communities safe. Because of our comprehensive safety program, we continued to deliver strong results in carrying out our mission to stay accident free every day.
- We saw a year-over-year improvement of 72% in our combined total recordable incident rate, which includes the rate for both employees and contractors in the first quarter.
- Our Haynesville team has gone 2.4 years without an employee recordable injury.
We are proud of the accomplishments and dedication of our teams for prioritizing safety and working to ensure we follow our strict standards.
For more information on our sustainability efforts, visit chk.com/sustainability, and stay up to date on Chesapeake employees’ related activities on ESG News.