EX-99.2 3 chk-ex_992x20220331x8kxpr.htm EX-99.2 Document
Exhibit 99.2
CHESAPEAKE ENERGY CORPORATION - SUPPLEMENTAL TABLES
1



CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
Successor
($ in millions)March 31,
2022
December 31,
2021
Assets
Current assets:
Cash and cash equivalents$19 $905 
Restricted cash
Accounts receivable, net1,383 1,115 
Short-term derivative assets
Other current assets75 69 
Total current assets1,487 2,103 
Property and equipment:
Oil and natural gas properties, successful efforts method
     Proved oil and natural gas properties 10,259 7,682 
     Unproved properties 2,263 1,530 
     Other property and equipment 495 495 
Total property and equipment13,017 9,707 
Less: accumulated depreciation, depletion and amortization(1,300)(908)
Property and equipment held for sale, net
Total property and equipment, net11,720 8,802 
Long-term derivative assets— 
Other long-term assets78 104 
Total assets$13,293 $11,009 
Liabilities and stockholders' equity
Current liabilities:
Accounts payable$374 $308 
Accrued interest39 38 
Short-term derivative liabilities 2,638 899 
Other current liabilities1,341 1,202 
Total current liabilities4,392 2,447 
Long-term debt, net2,774 2,278 
Long-term derivative liabilities393 249 
Asset retirement obligations, net of current portion334 349 
Other long-term liabilities17 15 
Total liabilities7,910 5,338 
Contingencies and commitments
Stockholders’ equity:
Successor common stock, $0.01 par value, 450,000,000 shares authorized: 127,052,372 and 117,917,349 shares issued
Successor additional paid-in capital5,615 4,845 
Retained earnings (accumulated deficit)(233)825 
Total stockholders’ equity5,383 5,671 
Total liabilities and stockholders’ equity$13,293 $11,009 
2


CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
SuccessorPredecessor
Three Months Ended
March 31, 2022
Period from February 10, 2021 through March 31, 2021Period from January 1, 2021 through February 9, 2021
($ in millions except per share data)
Revenues and other:
Oil, natural gas and NGL$1,914 $553 $398 
Marketing867 277 239 
Oil and natural gas derivatives(2,125)46 (382)
Gains on sales of assets279 
Total revenues and other935 880 260 
Operating expenses:
Production110 40 32 
Gathering, processing and transportation242 111 102 
Severance and ad valorem taxes63 24 18 
Exploration
Marketing851 280 237 
General and administrative26 15 21 
Separation and other termination costs— — 22 
Depreciation, depletion and amortization409 122 72 
Other operating expense (income), net23 (12)
Total operating expenses1,729 595 494 
Income (loss) from operations(794)285 (234)
Other income (expense):
Interest expense(32)(12)(11)
Other income16 22 
Reorganization items, net— — 5,569 
Total other income (expense)(16)10 5,560 
Income (loss) before income taxes(810)295 5,326 
Income tax benefit(46)— (57)
Net income (loss) available to common stockholders$(764)$295 $5,383 
Earnings (loss) per common share:
Basic$(6.32)$3.01 $550.35 
Diluted$(6.32)$2.75 $534.51 
Weighted average common shares outstanding (in thousands):
Basic120,805 97,907 9,781 
Diluted120,805 107,159 10,071 

3


CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
SuccessorPredecessor
 Three Months Ended
March 31, 2022
Period from February 10, 2021 through March 31, 2021Period from January 1, 2021 through February 9, 2021
($ in millions)
Cash flows from operating activities:
Net income (loss)$(764)$295 $5,383 
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization409 122 72 
Deferred income tax benefit— — (57)
Derivative (gains) losses, net2,125 (46)382 
Cash payments on derivative settlements, net(568)(32)(17)
Share-based compensation— 
Gains on sales of assets(279)(4)(5)
Non-cash reorganization items, net— — (6,680)
Exploration— 
Other(8)45 
Changes in assets and liabilities(70)70 851 
Net cash provided by (used in) operating activities853 409 (21)
Cash flows from investing activities:
Capital expenditures(344)(77)(66)
Business combination, net(2,006)— — 
Proceeds from divestitures of property and equipment403 — 
Net cash used in investing activities(1,947)(73)(66)
Cash flows from financing activities:
Proceeds from Exit Credit Facility - Tranche A Loans1,565 30 — 
Payments on Exit Credit Facility - Tranche A Loans(1,065)(80)(479)
Payments on DIP Facility borrowings— — (1,179)
Proceeds from issuance of senior notes, net— — 1,000 
Proceeds from issuance of common stock— — 600 
Proceeds from warrant exercise— — 
Debt issuance and other financing costs— (3)(8)
Cash paid to repurchase and retire common stock(83)— — 
Cash paid for common stock dividends(210)— — 
Other— (1)— 
Net cash provided by (used in) financing activities208 (54)(66)
Net increase (decrease) in cash, cash equivalents and restricted cash(886)282 (153)
Cash, cash equivalents and restricted cash, beginning of period914 126 279 
Cash, cash equivalents and restricted cash, end of period$28 $408 $126 
Cash and cash equivalents$19 $340 $40 
Restricted cash68 86 
Total cash, cash equivalents and restricted cash$28 $408 $126 
4


OIL, NATURAL GAS AND NGL PRODUCTION AND AVERAGE SALES PRICES (unaudited)
Successor
Three Months Ended March 31, 2022
 OilNatural GasNGLTotal
 MBbl
per day
$/BblMMcf
per day
$/McfMBbl
per day
$/BblMBoe
per day
$/Boe
Marcellus— — 1,452 4.66 — — 242 27.97 
Haynesville— — 1,625 4.46 — — 271 26.73 
Eagle Ford52 95.00 129 4.04 16 41.09 90 68.67 
Powder River Basin95.18 41 5.45 53.96 17 63.98 
Total60 95.02 3,247 4.54 19 43.05 620 34.31 
Average Realized Price (including realized derivatives)65.64 3.08 43.05 23.79 
Successor
Period from February 10, 2021 through March 31, 2021
OilNatural GasNGLTotal
MBbl
per day
$/BblMMcf
per day
$/McfMBbl
per day
$/BblMBoe
per day
$/Boe
Marcellus— — 1,283 2.53 — — 214 15.21 
Haynesville— — 524 2.68 — — 87 16.09 
Eagle Ford66 61.51 143 6.04 18 25.72 107 50.07 
Powder River Basin10 58.95 57 4.82 34.75 23 42.57 
Total76 61.19 2,007 2.89 21 27.20 431 25.57 
Average Realized Price (including realized derivatives)45.68 2.83 27.52 22.59 
Predecessor
Period from January 1, 2021 through February 9, 2021
OilNatural GasNGLTotal
MBbl
per day
$/BblMMcf
per day
$/McfMBbl
per day
$/BblMBoe
per day
$/Boe
Marcellus— — 1,233 2.42 — — 206 14.49 
Haynesville— — 543 2.44 — — 90 14.62 
Eagle Ford74 53.37 165 2.57 18 23.94 120 40.27 
Powder River Basin10 51.96 61 2.92 34.31 24 34.25 
Total84 53.21 2,002 2.45 22 25.92 440 22.63 
Average Realized Price (including realized derivatives)49.062.6231.4221.46
Non-GAAP Combined
Three Months Ended March 31, 2021
 OilNatural GasNGLTotal
 MBbl
per day
$/BblMMcf
per day
$/McfMBbl
per day
$/BblMBoe
per day
$/Boe
Marcellus— — 1,261 2.48 — — 210 14.90 
Haynesville— — 532 2.57 — — 89 15.42 
Eagle Ford70 57.66 153 4.37 18 24.93 114 45.46 
Powder River Basin10 55.84 59 3.94 34.54 23 38.75 
Total80 57.45 2,005 2.69 22 26.62 436 24.25 
Average Realized Price (including realized derivatives)46.23 2.70 26.62 22.20 

5


GROSS MARGIN (unaudited)
SuccessorPredecessorNon-GAAP Combined
Three Months Ended
March 31,
Period from February 10, 2021 through
March 31,
Period from
January 1, 2021 through
February 9,
Three Months Ended
March 31,
2022202120212021
($ in millions, except per unit)$$/Boe$$/Boe$$/Boe$$/Boe
Marcellus
Oil, natural gas and NGL sales$609 27.97 $163 15.21 $119 14.49 $282 14.90 
Production expenses13 0.62 0.50 0.50 0.50 
Gathering, processing and transportation expenses71 3.27 42 3.94 34 4.17 76 4.04 
Severance and ad valorem taxes0.15 0.09 0.07 0.08 
Gross margin$521 23.93 $115 10.68 $80 9.75 $195 10.28 
Haynesville
Oil, natural gas and NGL sales$652 26.73 $70 16.09 $53 14.62 $123 15.42 
Production expenses32 1.32 1.50 1.12 10 1.32 
Gathering, processing and transportation expenses65 2.67 11 2.45 11 2.93 22 2.67 
Severance and ad valorem taxes12 0.54 0.56 0.54 0.55 
Gross margin$543 22.20 $51 11.58 $36 10.03 $87 10.88 
Eagle Ford
Oil, natural gas and NGL sales$554 68.67 $272 50.07 $193 40.27 $465 45.46 
Production expenses55 6.87 24 4.40 21 4.24 45 4.32 
Gathering, processing and transportation expenses84 10.41 44 8.05 45 9.32 89 8.65 
Severance and ad valorem taxes36 4.49 16 3.00 13 2.69 29 2.86 
Gross margin$379 46.90 $188 34.62 $114 24.02 $302 29.63 
Powder River Basin
Oil, natural gas and NGL sales$99 63.98 $48 42.57 $33 34.25 $81 38.75 
Production expenses10 5.63 4.37 3.37 3.91 
Gathering, processing and transportation expenses22 13.93 14 12.65 12 12.53 26 12.59 
Severance and ad valorem taxes11 6.52 3.92 2.88 3.44 
Gross margin$56 37.90 $24 21.63 $16 15.47 $40 18.81 
6


CAPITAL EXPENDITURES ACCRUED (unaudited)

SuccessorPredecessorNon-GAAP Combined
Three Months Ended
March 31, 2022
Period from February 10, 2021 through
March 31, 2021
Period from
January 1, 2021 through
February 9, 2021
Three Months Ended
March 31, 2021
($ in millions)
Drilling and completion capital expenditures:
Marcellus$62 $39 $30 $69 
Haynesville192 11 22 33 
Eagle Ford48 17 
Powder River Basin24 — 
Total drilling and completion capital expenditures326 59 61 120 
Leasehold and additions to other PP&E— 
Capitalized interest
Total capital expenditures$339 $61 $62 $123 
7


OIL AND NATURAL GAS HEDGING POSITIONS AS OF APRIL 29, 2022 (a)
Crude Oil Swaps
Volume
(MMBbls)
Avg. NYMEX
Price of Swaps
Q2 2022 (b)
2.8 $43.12 
Q3 20222.7 $44.85 
Q4 20222.6 $45.92 
Total 20228.1 $44.59 
Total 20231.9 $47.17 

Crude Oil Collars
Volume
(MMBbls)
Avg. NYMEX
Bought Put Price
Avg. NYMEX
Sold Call Price
Total 20235.5 67.98 $82.10 

Oil Basis Protection Swaps
Volume
(MMBbls)
Avg. NYMEX
plus/(minus)
Q2 2022 (b)
3.6 $0.60 
Q3 20223.6 $0.89 
Q4 20223.5 $0.89 
Total 202210.7 $0.79 
Total 20236.2 $0.96 

Natural Gas Swaps
Volume
(Bcf)
Avg. NYMEX
Price of Swaps
Q2 2022 (b)
130 $2.60 
Q3 2022134 $2.63 
Q4 2022117 $2.60 
Total 2022381 $2.61 
Total 2023204 $2.67 
Total 202488 $2.67 
Total 202527 $2.65 

Natural Gas Swaptions
Volume
(Bcf)
Avg. NYMEX
Strike Price
Total 2023$2.88 
8


Natural Gas Collars
Volume
(Bcf)
Avg. NYMEX
Bought Put Price
Avg. NYMEX
Sold Call Price
Q2 2022 (b)
90 $3.33 $4.41 
Q3 202294 $3.41 $4.56 
Q4 2022120 $3.12 $4.27 
Total 2022304 $3.27 $4.40 
Total 2023314 $3.14 $4.86 

Natural Gas Three-Way Collars
Volume
(Bcf)
Avg. NYMEX
Sold Put Price
Avg. NYMEX
Bought Put Price
Avg. NYMEX
Sold Call Price
Q2 2022 (b)
$2.41 $2.90 $3.43 
Q3 2022$2.41 $2.90 $3.43 
Q4 2022$2.41 $2.90 $3.43 
Total 202219 $2.41 $2.90 $3.43 
Total 2023$2.50 $3.40 $3.79 

Natural Gas Written Call Options
Volume
(Bcf)
Avg. NYMEX
strike price
Total 202318 $3.29 

Natural Gas Basis Protection Swaps
Volume
(Bcf)
Avg. NYMEX
plus/(minus)
Q2 2022 (b)
105 $(0.39)
Q3 2022103 $(0.44)
Q4 202274 $(0.14)
Total 2022282 $(0.34)
Total 2023134 $(0.03)
Total 202436 $(0.12)
Total 2025$(0.21)
____________________________________________
(a)Includes hedges assumed in Marcellus Acquisition
(b)Includes amounts settled in April and May 2022.
9


NON-GAAP FINANCIAL MEASURES

As a supplement to the financial results prepared in accordance with U.S. GAAP, Chesapeake’s quarterly earnings releases contain certain financial measures that are not prepared or presented in accordance with U.S. GAAP. These non-GAAP financial measures include Adjusted Net Income (Loss) Attributable to Chesapeake, Adjusted EBITDAX, Free Cash Flow and Net Debt. A reconciliation of each financial measure to its most directly comparable GAAP financial measure is included in the tables below.

These financial measures are non-GAAP and should not be considered as an alternative to, or more meaningful than, net income (loss), earnings (loss) per common share or cash flow provided by operating activities prepared in accordance with GAAP.

Chesapeake believes that the non-GAAP measures presented, when viewed in combination with its financial measures prepared in accordance with GAAP, provide useful information as they exclude certain items management believes affects the comparability of operating results. Management believes these adjusted financial measures are a meaningful adjunct to earnings and cash flows calculated in accordance with GAAP because (a) management uses these financial measures to evaluate the company’s trends and performance relative to other oil and natural gas producing companies, (b) these financial measures are comparable to estimates provided by securities analysts, and (c) items excluded generally are one-time items or items whose timing or amount cannot be reasonably estimated. Accordingly, any guidance provide by the company generally excludes information regarding these types of items.

Because not all companies use identical calculations, Chesapeake’s non-GAAP measures may not be comparable to similar titled measures of other companies.

10


RECONCILIATION OF ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO CHESAPEAKE (unaudited)
SuccessorPredecessor
Three Months Ended
March 31, 2022
Period from
February 10, 2021 through
March 31, 2021
Period from
January 1, 2021 through
February 9, 2021
$$/Share$$/Share$$/Share
($ in millions, except per share data)
Net income (loss) available to common stockholders (GAAP)$(764)$(6.32)$295 $3.01 $5,383 $550.35 
Effect of dilutive securities— — — (0.26)— (15.84)
Diluted income (loss) available to common stockholders (GAAP)$(764)$(6.32)$295 $2.75 $5,383 $534.51 
Adjustments:
Unrealized (gains) losses on oil and natural gas derivatives1,538 12.73 (113)(1.05)369 36.64 
Separation and other termination costs— — — — 22 2.18 
Gains on sales of assets(279)(2.31)(4)(0.04)(5)(0.50)
Other operating expense (income), net31 0.26 0.02 (12)(1.19)
Reorganization items, net— — — — (5,569)(552.97)
Other(13)(0.11)(21)(0.20)— — 
Tax effect of adjustments(a)
(77)(0.64)— — (57)(5.66)
Effect of dilutive securities— (0.52)— — — — 
Adjusted net income attributable to Chesapeake (Non-GAAP)$436 $3.09 $159 $1.48 $131 $13.01 
(a)
The 2022 Successor Period includes a tax effect attributed to the 2022 Successor Period reconciling adjustments using an estimated 6% annual effective tax rate. The 2021 Predecessor Period includes an income tax benefit of $57 million attributed to deferred income tax effects associated with Predecessor accumulated other comprehensive income, eliminated in fresh start accounting.
11


RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDAX (unaudited)

SuccessorPredecessorNon-GAAP Combined
Three Months Ended
March 31, 2022
Period from February 10, 2021 through March 31, 2021Period from January 1, 2021 through February 9, 2021Three Months Ended
March 31, 2021
($ in millions)
Net income (loss) (GAAP)$(764)$295 $5,383 $5,678 
Adjustments:
Interest expense32 12 11 23 
Income tax benefit(46)— (57)(57)
Depreciation, depletion and amortization409 122 72 194 
Exploration
Unrealized (gains) losses on oil and natural gas derivatives1,538 (113)369 256 
Separation and other termination costs— — 22 22 
Gains on sales of assets(279)(4)(5)(9)
Other operating expense (income), net31 (12)(10)
Reorganization items, net— — (5,569)(5,569)
Other(13)(21)— (21)
Adjusted EBITDAX (Non-GAAP)$913 $294 $216 $510 

12


ADJUSTED FREE CASH FLOW
SuccessorPredecessorNon-GAAP Combined
Three Months Ended
March 31, 2022
Period from February 10, 2021 through March 31, 2021Period from January 1, 2021 through February 9, 2021Three Months Ended
March 31, 2021
($ in millions)
Net cash provided by (used in) operating activities (GAAP)$853 $409 $(21)$388 
Cash paid for reorganization items, net— 18 66 84 
Cash paid for acquisition costs23 — — — 
Capital expenditures(344)(77)(66)(143)
Adjusted free cash flow (Non-GAAP)$532 $350 $(21)$329 

NET DEBT
Successor
March 31, 2022
($ in millions)
Total debt (GAAP)$2,774 
Premiums and issuance costs on debt(103)
Principal amount of debt2,671 
Cash and cash equivalents(19)
Net debt (Non-GAAP)$2,652 
13