Profile: Chesapeake Energy Corp (CHK.

N)
(reuters)

Full Description

Chesapeake Energy Corporation (Chesapeake), incorporated on November 19,

1996, is a producer of natural gas, oil and natural gas liquids (NGL) in the United
States. The Company operates in two segments: Exploration and Production, and
Marketing, Gathering and Compression. The exploration and production segment is
responsible for finding and producing oil, natural gas and NGL. The marketing,
gathering and compression segment is responsible for marketing, gathering and
compression of oil, natural gas and NGL. As of December 31, 2016, it owned
interests in approximately 22,700 oil and natural gas wells. It has a diverse resource
base of onshore the United States unconventional natural gas and liquids assets. It
has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica
Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay
in the Powder River Basin in Wyoming. Its natural gas resource plays are the
Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the
Marcellus Shale in the northern Appalachian Basin in Pennsylvania. It also owns an
oil and natural gas marketing business.

The Company focuses its exploration, development, acquisition and production

efforts in the two geographic operating divisions, southern division and northern
division. The Southern Division includes the Eagle Ford Shale in South Texas, the
Anadarko Basin in northwestern Oklahoma and the Haynesville/Bossier Shales in
northwestern Louisiana and East Texas. The Northern Division includes the Utica
Shale in Ohio, the Marcellus Shale in the northern Appalachian Basin in
Pennsylvania and the Powder River Basin in Wyoming. As of December 31, 2016, it
held an interest in approximately 22,700 gross productive wells, including 19,100
properties in which it held a working interest and 3,600 properties in which it held an
overriding or royalty interest. Of the wells in which it had a working interest, 14,500
gross were classified as natural gas productive wells and 4,600 gross were classified
as oil productive wells, as of December 31, 2016.

Chesapeake Energy Marketing, L.L.C., one of the Company's subsidiaries, provides

oil, natural gas and NGL marketing services, including commodity price structuring,
securing and negotiating gathering, hauling, processing and transportation services,
contract administration and nomination services for Chesapeake and other interest
owners in Chesapeake-operated wells. It also performs marketing services for third-
party producers in wells in which it does not have an interest. Oil production is sold
under market-sensitive short-term or spot price contracts. Natural gas and NGL
production is sold to purchasers under percentage-of-proceeds contracts,
percentage-of-index contracts or spot price contracts. It operates its compression
business through the subsidiaries Compass Manufacturing, L.L.C. (Compass) and
MidCon Compression, L.L.C. (MidCon). Compass designs, engineers, fabricates,
installs and sells natural gas compression units, accessories and equipment used in
the production, treatment and processing of oil and natural gas. A majority of the
completed compressors are sold to MidCon. As of December 31, 2016, MidCon
operated wellhead and system compressors, with approximately 150,000
horsepower of compression, to facilitate the transportation of natural gas primarily
produced from Chesapeake-operated wells.