Respective to our industry, these truths are:

• Energy insecurity and energy poverty are global threats, even among our allies.
• Natural gas is affordable, reliable, lower carbon and available now.
• The U.S. is a natural gas producer powerhouse with increasing global LNG export opportunity.
• Responsible energy production is a social and economic value creator.

Key to this future is Chesapeake’s diverse natural gas portfolio. We offer reliable, lower carbon production to deliver affordable energy for consumers in the U.S. and around the world. Of this energy, 100% is certified as responsibly sourced gas (RSG) — production verified by a third party as meeting high standards of safety and environmental performance and stakeholder engagement.

Sustainability Leadership
Driving sustainability leadership is one of our key strategic pillars — a commitment we balance with profitability. In 2023, we achieved an industry-leading 0.14 safety incident rate (combined TRIR) and significantly reduced our GHG emissions while maintaining a more than $1 billion cash balance at year-end and returning more than $840 million to shareholders. These achievements are not at odds, but rather run parallel to our ultimate target of shareholder value creation.

As our business makes pivotal market shifts, we remain committed to sustainability excellence. Earlier this year, we announced our intent to merge with Southwestern Energy to create the industry’s premier natural gas company. This portfolio will include daily production of nearly 8 bcfe/d and more than 5,000 gross locations — or 15 years of inventory — across Haynesville and Appalachia.

Most importantly, our combined company will have an increased ability to serve domestic and international end users with RSG, delivering more critical energy to consumers in need. Together, we will accelerate America’s energy reach and fuel a more affordable, reliable and lower carbon future.

Achieving Our Emissions Reduction Targets
In addition to our RSG certification, we continue our measured progress to net zero (Scope 1 and Scope 2) GHG emissions by 2035. At year-end 2023, we achieved our interim emissions reduction targets ahead of schedule. These targets included reducing our Scope 1 and Scope 2 GHG intensity to below 3.0 (metric tons CO₂e / gross operated mboe produced) and reducing our Scope 1 and Scope 2 methane intensity to 0.02% (volume methane emissions / volume gross operated natural gas produced).

Capital allocation, the adoption of technology and best management practices and, employee innovation drove our progress. This holistic approach will continue to be key to implementing further emissions reduction initiatives across our organization.

We Are LNG Ready
As a combined company, we will build on Chesapeake’s foundation in the LNG market. The U.S. is leading in LNG exports and growing its infrastructure to meet global demand (nearly 30 bcf/d LNG facilities in service or under construction, estimated in service 2024 – 2028). Post merger, with our size and Investment Grade quality balance sheet, we will help connect crucial natural gas resources to consumers in need.

The world is short on energy. Chesapeake, and our industry, stands ready to be a solution for a lower carbon future. The Chesapeake team remains motivated and unwavering in our commitment to supporting energy security and global prosperity, while reducing emissions and maintaining safe operations.

This report is our invitation for you to follow our progress and hold us accountable to our high standards as we work to deliver the affordable, reliable, lower carbon energy supply needed around the world.

Domenic J. “Nick” Dell’Osso, Jr.
President, Chief Executive Officer and Director
June 2024