CEO Roundtable

CEO Roundtable – 2005 IPAA Annual Meeting – 10/26/05

1CEO Roundtable – 2005 IPAA Annual MeetingHouston, TexasOctober 26, 2005

CEO Roundtable – 2005 IPAA Annual MeetingHouston, TexasOctober 26, 2005


2

CHK Overview 2nd largest independent producer of U.S. natural gas: (trail only DVN), #5 overall (includes

majors, utilities and pipelines)

#1 driller in U.S.: 74 operated rigs, 72 non-operated rigs, collector of 10% of all dailydrilling info generated in the U.S.

Active consolidator in focused areas: $9.9 billion since ’98, $2.1 billion in ’04, $4.5 billionto date in ’05

Increasing production: 1,270 mmcfe/day projected ’05 production - 28% YOY increase;1,543 mmcfe/day projected ’06 production - 22% YOY increase

Increasing reserves: 7.1 tcfe of proved reserves at 6/30/05, 92% natural gas, 64% proved developed, 13.8 year R/P

Upside potential: 6.4 tcfe of non-proved reserve potential in: i) conventional, ii) unconventional gas resource and iii) emerging gas resource plays: 12-year drilling inventory

Industry leading leasehold and seismic position: 7.6 mm acres of U.S. onshore leasehold plus10.9 mm acres of 3-D seismic

$19.4 billion EV: $14.2 billion equity value, $5.2 billion long-term debt

2006 estimates: ebitda $3.4 billion; operating cash flow $3.1 billion; net income to common $1.2 billion

CHK offers great value to investors: 4.5x operating cash flow, 5.7x ebitda, 12.1x P/E ratio

Top stock price performance: CHK up 25x in 12 years as a public company, #2 performer among mid and large-cap E&P companies during that period

Data above incorporates:• CHK’s Outlook as of 10/3/05;• Pro forma adjustments for August 2005 acquisitions and pending acquisition of Columbia Natural

Resources (CNR);• An assumed common stock price of $34.00, NYMEX prices of $8.00/mcf and $50.00/bbl for 2006 and

excluding effects of FAS 133 (unrealized hedging gain or loss) and charges incurred in connection with stock based compensation; and

• The August 2005 $600 mm senior notes issuance, the September 2005 issuance of 9.2 million shares of common stock, the September 2005 issuance of $345 million of convertible preferred stock and the estimated debt and equity financings of the pending acquisition of CNR


3

Agreed to acquire Columbia Natural Resources, LLC (CNR) for $2.2 billion in cash and assume approximately $75 million working capital deficit and additional liabilities related to prepaid sales and hedging agreements valued as follows:

– Proved reserves: 1.1 tcfe for $1.5 billion = $1.45/mcfe(1)

– Probable/possible reserves and unevaluated leasehold: 1.4 tcfe and 4.1 mm net acres (3.6 mm net acres onshore U.S.) for $500 mm

– Midstream: 6,500 miles of gathering pipeline and infrastructure for $175 mm

All-in cost to develop 2.5 tcfe of 3P reserves = $2.48/mcfe(1)

99% natural gas; 70% proved developed reserves; 125 mmcfe current daily production rate; 23-year R/P ratio (16 years on proved developed); operate 91% of wells with a 93% average working interest

Anticipate hedging at least 50% of CNR’s estimated base production through 12/08

Price decks used to value CNR were much lower than the price decks on the forward curve; this arbitrage opportunity has significantly expanded over the last four years

Review of CNR Acquisition

(1)Excludes negative working capital and liabilities associated with assumed prepaid sales and hedging agreements


4

Immediate critical mass and scale in a proven gas prone basin– Fourth largest gas producer in Appalachian Basin behind Equitable, Consol and

Dominion– Over 46 tcf of cumulative gas production in Appalachia with 9 tcf of proved and 68 tcf

of unproved gas remaining(1)

Attractive all-in economics– Premium gas price realizations: High btu gas (1,140 btu/mcf); positive basis

differentials of $0.25 to $0.50/mmbtu over NYMEX vs. $2.00 to $4.00/mmbtu discounts to NYMEX in various southwestern and western basins

– Attractive lease operating and future development costs: $1.35/mcfe and $2.35/mcfe

Multiple value creation opportunities:– Fragmented basin that is ripe for consolidation– Drilling acceleration to enhance PV of inventory

• Plan to triple capex to over $200 mm in 2006• Low-risk gas-farming opportunities of long-lived, low production decline rate

assets • Proven blanket sand and shale horizons ideal for accelerated drilling program

– Future reserve upside?• CHK has identified 1,316 PUDs and 8,119 unproved drillsites and initially

recognized 2.5 tcfe of 3P reserves vs. 1,611 PUDs and 14,000 unproved locations and 3.9 tcf of 3P reserves determined by seller’s third-party engineers

– Deeper drilling potential that plays to CHK’s expertise in largely under-explored basin• <1% of more than 400,000 wells drilled below 7,500 feet

– Over 3,000 wells with workover potential at >50% rates of return

CNR Acquisition Highlights

(1)Source: National Petroleum Council - September 2003

CHK believes the Appalachian Basin is the last frontier for American onshore gas exploration and consolidation


5

AnadarkoBasin

BarnettShale

SouthTexas

Texas G

ulf Coast

PermianBasin

ArkomaBasin

Ark-La-Tex

Gas Focused Onshore Platform – Now Expanding to Appalachia…

CHK/CNR field officesCHK OKC headquarters

CHK operated rigs (74) CHK non-operated rigs (72)

Counties with CHK leasehold

Tennessee

Michigan

Kentucky

Maryland

PennsylvaniaOhio

New York

West Virginia

Virginia

Counties with leasehold CHK is acquiring from Columbia Natural Resources

Pro forma for pending acquisition of Columbia Natural ResourcesRig activity excludes Appalachian pending rigs

Scale: 1 inch = 115 miles

Scale: 1 inch = 200 miles Appalachian

Basin

CNR Charleston headquarters


6

…Extending CHK’sLong Reserve Life Asset Base

(1) As of 6/30/05 - Pro forma for acquisitions announced in August 2005(2) Includes pending acquisition of Columbia Natural Resources(3) “Other” includes the Piceance Basin of Colorado and the Williston Basin of North Dakota and

Montana.

Proved Reserves

(bcfe)

Proved Reserves

%

Production (mmcfe/d)

Production%

R/P (years)

Mid-Continent

3,750 53% 819 58% 12.5

Appalachia(

2) 1,050 15% 125 9% 23.0

Ark-La-Tex & Barnett Shale (1)

900 13% 169 12% 14.6

Permian (1) 700 10% 104 7% 18.4

S. Texas & Gulf Coast

600 8% 177 13% 9.3

Other (3) 50 1% 8 1% 17.1

Totals(1)(2)(3) 7,050 100% 1,402 100% 13.8


7

CHK’s Business Strategy Growth through acquisitions

• Acquire, exploit, expand and explore

Growth through the drillbit• Onshore domestic U.S.

Regional consolidation• “PIMBY” not “NIMBY”

Gas, gas, gas• Clean, domestic fuel


8

CHK’s Successful Business Strategy

Following operational failures and oil/gas price collapse in the late 1990s, CHK revamped its business strategy and for the past 7 years has executed a simple and highly effective business strategy:

– Balanced growth through acquisitions and the drillbit•Focus on long-lived, low-decline, onshore US gas reserves that have become much more valuable over time

•Rediscover the lost art of deep gas exploration through new investments in people, land and seismic in the right areas

– Regional consolidation to generate operating scale, maintain low operating and administrative costs and deliver high returns

•CHK’s scale in its core areas is a real competitive advantage and has created negotiating power, informational advantages and attracted top industry talent

– Concentration on gas•One of the first companies to recognize and capitalize on tightening supply/demand fundamentals and permanent upward shift in gas prices that began in ’99

CHK has benefited from substantial first mover advantages and has built one of the largest U.S. natural gas resource bases


9







10

Keys To Being A Successful Acquirer

Focus Know what you want to buy, where you want to buy it and how you want to buy it

Experience Inexperienced or occasional buyers generally do not succeed. CHK has a consistent approach to acquiring and assimilating acquisitions. CHK is always in the market and has ≈ 50 people working full-time on acquisition integration

Drillbit Expertise Must be able to accurately assess, accelerate and deliver upside from PUDs, probables, possibles and exploration opportunities

Operational Skill Must be able to operate acquired properties more efficiently than sellers. Significant operating scale and attention to detail are the keys to achieving efficiencies

CHK has executed more acquisition transactions in the past seven years than any other E&P company – experience helps prevent mistakes!

CHK has executed more acquisition transactions in the past seven years than any other E&P company – experience helps prevent mistakes!


11

Acquisition Margins Best Ever

Oil and gas price increases have far outpaced acquisition cost increases Margins matter, not per mcfe sticker price

Oil and gas price increases have far outpaced acquisition cost increases Margins matter, not per mcfe sticker price

$11.64

$2.30$2.27

$3.88$4.26

$3.22

$5.38

$6.13

$8.79

$2.76

$1.18 $0.71 $0.83$1.26

$1.43 $1.60 $1.76$2.25

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

$12.00

1998 1999 2000 2001 2002 2003 2004 2005 CNR

Gross margin between cost and gas price

$4.37

$3.00

$1.12$1.79$3.05

$1.56

$3.78

(to date)

7-yearCAGR

11.2%

29.5%

22.5%Acquisition cost – per mcfe

Average yearly gas price

$8.80

$6.54

(10/05)

(1) 2006 NYMEX strip as of 10/3/05

(1)


12







13

Why Is CHK the #1Driller in the U.S.?

Most active driller in U.S. by a wide margin

– 74 operated rigs currently drilling (plus 72 non-operated rigs drilling)– CHK gathers ≈10% of all the daily drilling information generated in

America• This is a distinctive competitive advantage.

1/4 of rigs drilling to targets > 15,000’; 1/2 between 10-15,000’; 1/4 < than 10,000’

– Drill more deep onshore wells than anyone in the industry– Also one of the leading horizontal drillers in the industry

If properly executed, good drilling easily generates the highest returns on capital: 100%+ vs. 20-25% acquisitions

However, creating value through the drillbit today is difficult– You had to start getting ready 5 years ago– Quality land, people and seismic are scarce resources

Over the past 7 years, CHK has differentially invested over $2.4 billion to build the industry’s largest inventories of U.S. leasehold (7.6 mm acres) and 3-D seismic (10.9 mm acres)(1)

– Amassed a 12-year inventory of over 23,500 drill sites– Now in every major U.S. onshore gas resource play out side of the Rockies

CHK is uniquely positioned to transfer and apply technology, data and geoscience knowledgebase across all of its operating regions

CHK is uniquely positioned to transfer and apply technology, data and geoscience knowledgebase across all of its operating regions

(1) Pro forma for pending acquisition of Columbia Natural Resources


14

0

100

200

300

400

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

4Q

'00

1Q

'01

2Q

'01

3Q

'01

4Q

'01

1Q

'02

2Q

'02

3Q

'02

4Q

'02

1Q

'03

2Q

'03

3Q

'03

4Q

'03

1Q

'04

2Q

'04

3Q

'04

4Q

'04

1Q

'05

2Q

'05

Base as of 4Q'00 Drillbit Production Maintenance

Drillbit Production Growth Acquisition Growth 1Q'01 to 1Q'05

Balanced Production Growth

473 mmcfe/day drillbitproduction growth(51% of growth)

452 mmcfe/day acquisitionproduction growth(49% of growth)

170 mmcfe/day baseproduction

2005 Q2 AverageProduction

CHK’s operating performance since January 2001 has been one of the two best performances among the 20 largest E&P companies

During this time, our production has more than tripled with over half of this growth coming from the drillbit

Through the drillbit only, CHK has created a top 20 U.S. gas producer from scratch in past 5 years

CHK’s operating performance since January 2001 has been one of the two best performances among the 20 largest E&P companies

During this time, our production has more than tripled with over half of this growth coming from the drillbit

Through the drillbit only, CHK has created a top 20 U.S. gas producer from scratch in past 5 years

Total production has increased 925

mmcfe/day in 18 quarters, or 35% CAGR

149 mmcfe/day drillbitproduction maintenance

20% initial decline rate 12% current decline rate

22% CAGR through the drillbit

319 mmcfe/day

1,244 mmcfe/day


15

Results From Investing in the Future

(1) Proved developed and proved undeveloped reserves as of 6/30/05 are internal estimates, as are non-proved reserves as of 2004 and as of 6/30/05

(2) Includes acquisitions announced in August 2005 and pending acquisition of Columbia Natural Resources

870 951 1,269 1,6272,352

3,2184,550

336 404511

578

817

1,684

2,500

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

13,000

14,000

1999 2000 2001 2002 2003 2004 6/05

1,206 1,355

1,780 2,205

3,169

CHK’s deep inventory of projects helps assure repeatable, low risk value creation

4,000

8,902

Non-proved reserve potential

Proved undeveloped (PUD’s)

Proved developed (PD’s)

# Total proved and non-proved reserves (3P)(1)

Bcfe

(2)

13,450(2)

6,400


16

CHK’s Substantial U.S. Gas Resource Base

Conventional

Unconventional gas resource

Emerging gas resource

0.6

2.6

4.4

100

1,000

1,400

Net Acreage(7.6 million acres)

Drillsites(23,500 gross wells)

Proved UndevelopedReserves

(2,500 bcfe)

Non-ProvedReserves

(6,400 bcfe)

Twelve-year identified inventory of over 23,500 drillsites to develop 2.5 tcfe of proved undeveloped reserves and 6.4 tcfe of non-proved reserves

Conventional plays: Much of the Mid-Continent, Permian, Gulf Coast, S. Texas and other areas

– Mountain Front Springer: (S. & W. OK); >100,000 net acres; Prolific play initiated by CHK 3-D seismic and leasehold

– Zapata County: (S. TX); ≈100,000 net acres; CHK 3rd largest producer in the #1 gas producing county in Texas

Unconventional gas resource plays:

– Sahara (NW OK): >500,000 net acres; Foundational asset; ≈20-year drilling inventory; 640 acre spacing in 1998, moving down to 40’s

– Granite, Cherokee/Atoka Washes (West OK/TX Panhandle): ≈200,000 net acres; Overlooked formations from low gas price days in Anadarko Basin

– Barnett Shale (N. TX): 48,000 net acres; Recent expansion in Johnson County sweet spot through acquisition of Hallwood’s interest in S. Block AMI

– Hartshorne Coal (Oklahoma Arkoma): ≈100,000 net acres; CHK has drilled over 300 CBM wells

– Ark-La-Tex tight sands: >50,000 net acres; CHK rapidly becoming a player in prolific Ark-La-Tex region

– Appalachia: (WV, KY, OH, PA, NY) 3.5 mm net acres; 9,435 undrilled locations of primarily shallow, low-risk drilling; > 15-year inventory

Emerging gas resource plays:

– Fayetteville Shale (Arkansas Arkoma): >200,000 net acres; SWN has been successful to date. CHK plans to drill six operated wells by year-end 2005

– Haley (West TX): ≈125,000 net acres; Permian Basin deep over-pressured gas play in Loving County, TX with APC as a competitor/partner

– Caney/Woodford Shales (Oklahoma Arkoma): ≈250,000 net acres; age equivalent to Fayetteville, too early to declare success

Continue to actively expand all three play types with >500,000 acres acquired in 2Q05 through aggressive land acquisition program utilizing >500 land brokers in the field

We’re also working on several new potentially significant gas resource plays, details to come . . .

Most recently, CNR acquisition opens up multiple unconventional shale, tight sand and CBM plays

Continue to actively expand all three play types with >500,000 acres acquired in 2Q05 through aggressive land acquisition program utilizing >500 land brokers in the field

We’re also working on several new potentially significant gas resource plays, details to come . . .

Most recently, CNR acquisition opens up multiple unconventional shale, tight sand and CBM plays


17







18

Why Regionally Consolidate? Most E&P companies asset bases are too diversified, too spread out

Result is often operational mediocrity – sometimes incoherent corporate strategy and resulting investor unease about the future

CHK believes top-tier business success can only be achieved by being better at one thing than everyone else – for CHK, that’s onshore in the southwest U.S. and now the Appalachian Basin

Scale brings many benefits:

– Negotiating power: CHK demands and receives best prices and best services from service industry

– Information advantages: CHK receives > 50% of all drilling information generated in the Mid-Continent. There is tremendous value in this unique and sustainable competitive advantage

– Attracting talent: The best geologists, engineers, and landmen want to work where the action is

Our strategy is clear, concise and consistent. What we do has worked, is working and should keep working for the foreseeable future

CHK’s operating areas are still very fragmented and in the years ahead likely to produce further consolidation opportunities

CHK’s operating areas are still very fragmented and in the years ahead likely to produce further consolidation opportunities


19

Oklahoma: Example of Scale BuildingTop 20

Oklahoma Gas Producers

Gross OperatedOklahoma GasProduction(1)

Chesapeake(3)

BPApacheDominionCimarexKaiser-Francis (private)Samson (private)BurlingtonMarathonXTONewfieldSt. MaryQuestarChevronTexacoEOGAnadarkoConocoPhillipsUnitChaparral (private)Kerr-McGeeTop 20 Producers (excluding CHK)ChesapeakeAll OthersGrand Total

311108

785652454441373330262525212118181815

712 311578

1,601

OklahomaRigs Drilling @ 10/7/05(2)

3329

115145515230020210

58 3360

151

(1) In bcfs for 2004 (2) Source: Smith International survey(3) Pro forma for acquisitions(4) Oklahoma is the second largest gas producing state in the U.S.

(23%)1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.16.17.18.19.20.

(38%)

(40%)

OKCLondonHoustonRichmondDenverTulsaTulsaHoustonHoustonFt. WorthHoustonDenverSalt Lake CitySan FranciscoHoustonHoustonHoustonTulsaOKCOKC

Headquarters

(100%)

ProductionChange,

‘04 vs. ‘03

%

%%

22.415.1

0.165.148.410.3

1.14.4

19.43.4

10.019.414.716.619.2

4.90.2

10.522.731.2

0.222.4

1.33.1

%%(4)

Share ofOklahomaProduction

19.46.74.93.53.22.82.72.52.32.01.91.61.61.51.31.31.21.11.11.0

44.419.436.2

100.0

%

%

%%

%(22%)

CHK has increased its gas market share in Oklahoma from 1% to 19% in just six years

CHK has increased its gas market share in Oklahoma from 1% to 19% in just six years

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20







21

Why Has CHK Focused on Gas Since 1998?

Our operating strategy failure in the mid-90’s taught us that:– Significant new reserves of U.S. natural gas are hard to find– Finding costs would accelerate over time– Depletion rates would accelerate over time– Boom in gas fired power plants would cause a train wreck over time

We thought that supply/demand fundamentals would steadily improve– Demand trendline would be up 1-3% per year, supply trendline would

be down 0-2% per year– In pricing: higher highs, higher lows – the trend would be our friend

Volatility is high and likely to increase. We love gas price volatility – why?

– Volatility creates opportunity to hedge unusually high prices that generate unusually high returns

– Volatility reduces investment in the industry, which dampens supply– Volatility helps unlock the option value embedded in long-life reserves– This option value is a key “x” factor enhancing the value of long-lived

assets and it comes free with acquisitions

LNG is a risk to be monitored– But, our view is that U.S. gas prices will need to approximate BTU

parity with world oil prices to attract LNG imports in the 2009 and beyond time frame

U.S. natural gas production curve today is similar to U.S. oil production curve in the 1970’s: a peak, then a steady decline regardless of price increases and technology improvements

U.S. natural gas production curve today is similar to U.S. oil production curve in the 1970’s: a peak, then a steady decline regardless of price increases and technology improvements


22(A) Based on company reports(B) In mmcf per day(C) Independents in green, majors in black, pipelines in red(D) CHK’s change calculated on reported 2Q ’05 gas production(E) CHK’s reported gas production in 2Q ’05 was 1,111 mmcf per day

- production of 1,144 mmcf per day is pro forma for acquisitions announced in August 2005- post CNR, CHK gas production should exceed 1,350 mmcf/day

After CNR, CHK Should Become5th Largest U.S. Gas Producer

The top 20 gas producers (with their royalty owners @ 20%) account for 50-55% of U.S. gas production

The top 20 gas producers (with their royalty owners @ 20%) account for 50-55% of U.S. gas production

BPExxonMobilChevronDevon (1)RoyalDutchShellConocoPhillipsAnadarko (2)Chesapeake (3)EnCana (4)Kerr-McGee (5)XTO (6)DominionBurlington (7)EOG (8)Apache (9)WilliamsEl PasoNewfield (10)MarathonPioneer (11)

Company 2Q ‘04

Daily U.S. Natural Gas Production (A,B)

1Q ‘05

2Q ‘05 vs. 1Q ‘05% Change

2Q ’05 vs. 2Q ‘04% Change

2,790 1,987 2,001 1,652 1,327 1,226 1,388

841 824 648 803 980 905 619 665 506 676 520 620 536

21,513

2,6481,8811,6011,6101,3851,1691,1831,0461,0671,009

9221,013

906689638562581569546538

21,563

3.0%(3.8%)

1.2%(6.7%)(2.0%)

2.2%(3.0%)

6.2%(0.6%)

1.4%10.6%(3.1%)

4.9%2.5%2.5%6.3%2.4%3.0%2.0%2.9%0.9%

(2.3%)(9.0%)

(19.0%)(9.1%)2.3%

(2.5%)(17.4%)

32.1%28.8%57.9%26.9%

0.2%5.0%

14.1%(1.7%)18.2%

(12.0%)12.7%

(10.1%)3.3%1.1%

2Q ‘05

2,7271,8091,6211,5011,3571,1951,147

1,111/1,1441,0611,0231,019

982950706654598595586557554

21,752

1.2.3.4.5.6.7.8.9.

10.11.12.13.14.15.16.17.18.19.20.

(C)

(E)

BPXOMCVXDVNRD

COPAPCCHKECAKMGXTO

DBR

EOGAPAWMB

EPNFXMROPXD

Ticker (D) (D)

US Rigsat 10/7/05

309

134511182974482145322738262010181310

545


23

FinancialInformation


24

2006 Targets @ Various Gas Prices

$ 4,228126

22296451

603,569

2893,2801,226

62727

$ 1,265$ 3.03

1.4x8.6x4.3x5.4x

11.2x

$ 3,711312

22260451

603,274

2892,9851,226

62619

$ 1,078$ 2.59

1.6x7.9x4.7x5.9x

13.1x

($ in millions; gas price at various NYMEX prices; oil at $50.00 NYMEX)

O/G revenue (unhedged) @ 563 bcfe (1)

Hedging effectMarketing and otherProduction taxes (@ 7%)LOE (@ $0.80/mcfe)G&A (@ $0.11/mcfe)(2)

Ebitda(1)

InterestOperating cash flow (3)

Oil and gas depreciation (@ $2.18/mcfe)Depreciation of other assets (@ $0.11/mcfe)Income taxes (36.5% rate, 95% deferred)Net income to common(1)(2)

Net income per fully diluted shareNet debt/ebitda(4)

Ebitda/fixed charges (including pfd. dividends)(5)

MEV/operating cash flow(6)

EV/ebitda(7)

PE ratio(8)

@$7.00

$ 3,453405

22242451

603,127

2892,8381,226

62566

$ 946 $ 2.36

1.6x7.6x5.0x6.2x

14.4x

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314451

603,716

2893,4271,226

62781

$ 1,358$ 3.26

1.4x9.0x4.1x5.2x

10.4x

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@$8.00

$ 3,970219

22278451

603,422

2893,1331,226

62673

$ 1,172$ 2.81

1.5x8.3x4.5x5.7x

12.1x

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@$9.50

$4,7456122

332451

603,863

2893,5741,226

62834

$ 1,452$ 3.48

1.3x9.3x4.0x5.0x9.8x

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(as of 10/3/05)

(1) Before effects of FAS 133 (unrealized hedging gain or loss) (2) Before charges incurred in connection with issuances of restricted stock(3) Before changes in assets and liabilities(4) Net debt = long-term debt less cash(5) Fixed charges ($414 mm) = interest expense of $346 million plus preferred dividends of $68 million(6) MEV (Market Equity Value) = $14.2 billion ($34.00/share x 417 mm fully diluted shares pro forma for September 2005 equity offerings and estimated equity financing of the pending acquisition of Columbia Natural Resources)(7) EV (Enterprise Value) = $19.4 billion (Market Equity Value, plus $5.2 billion in long-term debt pro forma for the debt offering completed in August and estimated debt financing of the pending acquisition of Columbia Natural Resources)(8) Assuming a common stock price of $34.00/share


25

CHK Also Hedges Service Costs

Negotiating power through large operating scale– #1 customer of most onshore drilling service providers– We demand best pricing, best equipment, best people

Direct rig ownership: Building wholly-owned Nomac Drilling subsidiary to 40 rigs from 15 currently running; estimated current value ≈100% over CHK cost of ≈$80 mm

– Provides operational flexibility– Less turnover and loyalty to operator, not contractor

Rig investments: – Own 17% interest in Pioneer Drilling Company (AMEX: PDC) which has 50 rigs and has

7 more on order; ≈$80 mm unrealized gain to date– Recent $15 mm investment for a 45% interest in privately-held DHS Drilling Company

that has 6 rigs operating and is expanding to 10 rigs – Recent $25 mm investment for a 49% interest in privately-held Mountain Drilling

Company that has secured 4 specialty rigs

Third-party rigs: Sponsored the construction of 20 rigs through various drilling contracts with third party rig builders and operators; rates 10%-15% below current market levels

CHK’s ≈$160 mm of rig investments have appreciated ≈$150 mm and have or will increase the U.S. rig fleet by ≈60 rigs, or 4%, from 2004 to 2006

HOW?


26(1) NYMEX gas price changes and NYMEX oil price held constant at $56.725 per bbl(2) 7.1 tcfe pro forma for acquisitions announced in August 2005 and pending acquisition of CNR(3) 6.4 tcfe of unproved reserves valued from $0.80 - $1.30/mcfe(4) Cash, buildings, drilling rigs, midstream gas assets and investments at estimated fair value(5) Pro forma for the $600 million senior notes issuance in August 2005 and estimated financing related to the pending

acquisition of Columbia Natural Resources(6) Pro forma for working capital associated with the the pending acquisition of Columbia Natural Resources(7) Pro forma for September 2005 common and preferred stock offerings and estimated financing related to the pending

acquisition of Columbia Natural Resources(8) Based on common stock price of $34.00 per share

NYMEX Strip Prices @ 10/07/05

Oil Gas

2H0520062007200820092010

5+ yr. avg.

$11.09$11.31$9.39$8.28$7.56$7.04$8.93

$62.69$62.83$61.87$60.50$58.77$57.89$61.94

CHK’s NAV Exceeds Current Stock Price

So, even though stock has roughly doubled YTD, we believe it still has more room to run

So, even though stock has roughly doubled YTD, we believe it still has more room to run

As of June 30, 2005NAV @ various gas prices (1)

Proved reserves (2)

Unproved reserves (3)

Value of CHK hedgesValue of CNR hedges assumedOther assets (4)

Less: long-term debt (5)

Less: preferred stock (when not dilutive)Less: net working capital (6)

Shareholder value

Fully diluted common shares (7)

NAV per share

Potential % upside (8)

PV 10@$7.00

PV 10@$7.50

PV 10@$8.00

PV 10@$8.50

PV 10@$9.00

PV 10@$9.50($ in millions, except per share data)

$ 16,1095,120

370334940

5,115745198

$ 16,147

401

$ 40.27

18%

( )

( )

$ 17,5275,760

228411940

5,115400198

$ 18,331

408

$ 44.93

32%

( )

( )

$ 19,3796,400

87487940

5,115-

198

$ 21,006

417

$ 50.37

48%

( )

( )

$ 20,8697,040

55564940

5,115-

198

$ 22,917

417

$ 54.96

62%

( )

( )

$ 22,3597,680

197641940

5,115-

198

$ 24,828

417

$ 59.54

75%

( )

( )

$ 23,8498,320

338717940

5,115-

198

$ 26,741

417

$ 64.13

89%

( )

( )

( ) ( ) ( )

( ) ( )

( ) ( ) ( ) ( ) ( ) ( )


27

Why Own CHK ?

Performance: #2 mid-to-large cap stock price performer since 1999 and since 1993

Gas: Purest play in U.S. natural gas – all onshore

Focus: Uniquely focused business strategy provides high returns

Growth: 16 consecutive quarters of organic production growth vs. industry’s multi-year decline; 35% production growth in ’04, 28% in ’05, at least 22% in ’06

Sustainability: 6.4 tcfe of unproved reserve potential and 12-year drilling backlog

Balance Sheet: Steadily improving, low borrowing costs and long-term maturities

Value: Trade at a discount to NAV and discount to closest peers

Income: Pay a $0.20 annual common stock dividend

Hedging: Best hedging track record among E&P’s during past 5 years

Commitment – Two co-founders own ≈12% of common stock and equivalents, have been active open market acquirersCHK = Value, Growth, Performance

CHK = Value, Growth, Performance


28

Gas Market Thoughts


29

Drivers of Future Oil and Gas PricesPart 1

• Oil and natural gas is increasingly difficult and expensive to find, all across the globe – and we are consuming 31 billion bbls/year

• World population growth will continue until at least 2050, increasing by approx. 50% – that’s 3 billion more energy consumers (10x current USA population)

• 50% of today’s population (mostly Asia) is rapidly industrializing, and rapidly expanding energy consumption

• Average U.S. oil consumption per capita: 25.3 bbls/year 2003

• Average Korean oil consumption per capita: 17.7 bbls/year 2003

• Average Japanese oil consumption per capita: 15.6 bbls/year 2003

• Average Chinese oil consumption per capita: 1.8 bbls/year 2003

• Average Indian oil consumption per capita: 0.9 bbls/year 2003

• When urbanized Chinese (40%) and Indians (30%) reach same per capita consumption as Japanese/Koreans average today, the worldwill consume 42% more oil than today – where will 35 million new bbls/day come from? How quickly will China and India get there?

The Great Debate: How close are we to a peak of worldwide crude production?

The Great Debate: How close are we to a peak of worldwide crude production?


30

Drivers of Future Oil and Gas PricesPart II

• In addition to Asia, the U.S. and others will also continue to grow – remember, the U.S. adds the equivalent of a new Texas every 7-8 years in population and energy demand

• Despite the obvious need for massive new resources of oil and natural gas, futures markets and most investors/analysts believe that lower oil and gas prices are inevitable – although this is changing before our eyes

• Why so much denial of what appear to be easily visible trends?

– Energy has not been expensive for 20 years (almost half of U.S. population has never known anything other than cheap energy)

– It’s inconvenient to think about the implications of energy prices – every thing you own and do today is predicated on cheap energy

– Policies favoring cheap energy and a pristine environment are often in conflict

– Technology will save us – maybe, but much higher prices will be needed to drive the needed increases in energy technology investment

• Bush’s inaugural “Freedom from Tyranny” policy is bullish for energy prices

– If he’s right, strong demand increases will overwhelm supply increases

– If he’s wrong, supply will be at risk for a long time

• Hurricane Katrina demonstrates the folly of putting too many of our energy infrastructure eggs in one (very fragile) basket

And finally, when will peace, love and harmony break out in oil producing regions of the world?

And finally, when will peace, love and harmony break out in oil producing regions of the world?


31

Other Questions to Ponder

• Can LNG gas supply accretion (from a 2.5 bcf/day base in ‘05) overcome continuing U.S./Canada gas supply depletion (from a 70 bcf/day current base)?

• Will all (or enough) spot cargoes of LNG come to the U.S. and at what price?

• Will LNG importers have financial motivation to undercut U.S. gas prices at the moment of importation?

• When will we build gas pipeline from McKenzie Delta Alaska? How much of the McKenzie gas gets past Canadian oil sands projects? Should Alaska gas be liquefied instead?

• What happens if energy demand in India and China (40% of the world’s population) increases by 35 million bbls/day in next 15 years?

• How will U.S. resolve its public policy conflicts between cheap energy vs. a pristine environment?

• Will world oil production peak? When? ’05, ’10, ’15?

• After an oil production peak, how much stranded gas becomes converted to liquids rather than to LNG?

• How high do oil/natural gas prices have to rise to cut short economic growth/induce conservation/curb demand?

• How will Iraq and Iran play out and what happens if (or when?) House of Saud falls?

At what prices for oil and gas are you willing to change your consumption habits?

At what prices for oil and gas are you willing to change your consumption habits?


32

Corporate Information

Chesapeake Headquarters6100 N. Western AvenueOklahoma City, OK 73118Web site: www.chkenergy.com

Contacts:Jeffrey L. Mobley, CFAVice President – Investor Relationsand Research(405) [email protected]

Marcus C. RowlandExecutive Vice President andChief Financial Officer(405) [email protected]

Common Stock – NYSE: CHK

Other Publicly Traded Securities CUSIP Ticker6.0% Convertible Preferred Stock #165167701 CHKPrA5.0% Convertible Preferred Stock (2003 Series) #165167800 CHKPrB4.125% Convertible Preferred Stock #165167875 n/a5.0% Convertible Preferred Stock (2005 Series) #165167859 pending4.5% Convertible Preferred Stock #165167842 pending8.375% Senior Notes Due 2008 #165167AV9 CHK087.5% Senior Notes Due 2013 #165167BC0 CHK137.5% Senior Notes Due 2014 #165167BF3 CHK147.0% Senior Notes Due 2014 #165167BJ5 CHKA147.75% Senior Notes Due 2015 #165167BA4 CHK156.875% Senior Notes Due 2016 #165167BE6 CHK166.375% Senior Notes Due 2015 #165167BL0 CHKJ156.625% Senior Notes Due 2016 #165167BN6 CHKJ166.50% Senior Notes Due 2017 #165167BR7 pending6.25% Senior Notes Due 2018 #165167BQ9 CHK18


33

Forward-Looking Statements

This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements give our current expectations or forecasts of future events. They include estimates of oil and gas reserves, expected oil and gas production and future expenses, projections of future oil and gas prices, planned capital expenditures for drilling, leasehold acquisitions and seismic data, and statements concerning anticipated cash flow and liquidity, our business strategy and other plans and objectives for future operations, including our acquisition of Columbia Natural Resources, LLC. and related financings. In addition, statements concerning the fair value of derivative contracts and their estimated contribution to our future results of operations are based upon market information as of a specific date. These market prices are subject to significant volatility.

Although we believe the expectations and forecasts reflected in these and other 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. Factors that could cause actual results to differ materially from expected results are described under “Risk Factors” beginning on page S-13 of the Prospectus Supplement dated September 8, 2005 for our offering of 4.50% Convertible Preferred Stock we filed with the Securities and Exchange Commission on September 9, 2005. They include the volatility of oil and gas prices, adverse effects our substantial indebtedness and preferred stock obligations could have on our operations and future growth and on our ability to make debt service and preferred stock dividend payments as they become due, our ability to compete effectively against strong independent oil and gas companies and majors, the availability of capital on an economic basis to fund reserve replacement costs, uncertainties inherent in estimating quantities of oil and gas reserves and projecting future rates of production and the timing of development expenditures, our ability to replace reserves and sustain production, uncertainties in evaluating oil and gas reserves of acquired properties and associated potential liabilities, unsuccessful exploration and development drilling, declines in the values of our oil and gas properties resulting in ceiling test write-downs, lower prices realized on oil and gas sales and collateral required to secure hedging liabilities resulting from our commodity price risk management activities, drilling and operating risks, and the loss of key personnel. In addition, the CNR acquisition is subject to conditions which must be satisfied before closing.

We caution you not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation, and we undertake no obligation to update this information. We urge you to carefully review and consider the disclosures made in this presentation and our filings with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect our business.

CEO Roundtable – 2005 IPAA Annual Meeting – 10/26/05 1 CEO Roundtable – 2005 IPAA Annual Meeting Houston, Texas October 26, 2005 CEO Roundtable – 2005.

Documents

natural gas

tcf of unproved gas

proven gas prone basin

largest gas producer

ipaa annual meeting

unconventional gas resource

developed reserves